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    what is the difference between economic activity and non economic activity

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    Distinguish between economic activities and non economic activities.

    Distinguish between economic activities and non economic activities.

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    Distinguish between economic activities and non economic activities.

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    Distinguish between economic activities and non-economic activities.

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    Economic activities are those activities which are undertaken for a monetary gain. In other words, activities undertaken for earning income are called economic activities.

    Non-economic activities are those activities which are undertaken the personal satisfaction or for social services and not earning money.

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    SIMILAR QUESTIONS

    Q.

    Differentiate between economic and non-economic activities.

    Q.

    What do you mean by non-economic activities ?

    Q. State True or False: Activities, where people work to earn income, are called non-economic activities.

    स्रोत : byjus.com

    Difference Between Economic and Non

    The main difference between economic and non-economic activity is economic activities are performed for economic motive, i.e. earning profit. On the other hand, non-economic activities are performed due to social or psychological reasons, i.e. out of love, affection etc.

    Difference Between Economic and Non-Economic Activities

    Last updated on October 14, 2017 by Surbhi S

    Every human being keeps himself occupied in some activity to satisfy human wants; such activities are known as human activities. These activities are broadly classified as economic and non-economic activities. While economic activities are those conducted with an aim of earning money or acquiring wealth, non-economic activities are performed free of cost, with service motive.

    The main difference between economic and non-economic activities lies in the fact that the economic activities are carried out to satisfy human needs, whereas non-economic activities are performed for gaining psychological satisfaction. So, check out this article to get some more differences amidst these two types of human activities.

    Content: Economic Activities Vs Non-Economic Activities

    Comparison Chart Definition Key Differences Conclusion

    Comparison Chart

    BASIS FOR COMPARISON ECONOMIC ACTIVITY NON-ECONOMIC ACTIVITY

    Meaning Economic activity refers to a human activity related to production and consumption of goods and services for economic gain. Non-economic activity is an activity performed gladly, with the aim of providing services to others without any regard to monetary gain.

    Motive Economic, i.e. to earn money. Social or psychological, i.e. out of love, affection, etc.

    Money measurement Measured in monetary terms. Lacks money measurement.

    Approach Pragmatic Idealistic

    Results in Creation of wealth and assets. Satisfaction and happiness.

    National Income Adds value to national income. Does not affects national income.

    Definition of Economic Activities

    Economics activities are those activities which are associated with the production, exchange, distribution, and consumption of merchandise, at every level of the society. These activities are performed with the sole aim of earning money and producing wealth, to satisfy human wants, with limited resources. These activities form a basis for the economic development of the country as it adds value to the gross domestic product.

    Economic activities are classified as business, profession and employment. Business is an activity which involves production and distribution of goods and services, for profit. The profession is related to the services provided by profession for monetary compensation called fee. Employment refers to an occupation in which a person works for another person for salary or wages.

    Definition of Non-Economic Activities

    Non-economic activities refer to a human activity undertaken sheerly out of love, affection, sympathy or patriotism. These activities are conducted voluntarily with an aim of rendering services to others for free, i.e. it cannot be measured in terms of money. It includes all those activities which are performed for the satisfaction of human sentiments that can be social, religious, cultural, personal, recreational, charity, patriotic.

    Key Differences Between Economic and Non-Economic Activities

    The difference between economic and non-economic activities can be drawn clearly on the following grounds:

    An activity related to production and consumption of goods and services for economic gain is known as economic activities. An activity performed gladly, with the aim of providing services without any regard to monetary gain is known as the non-economic activity.

    Economic activities are performed for economic motive, i.e. earning profit. On the other hand, non-economic activities are performed due to social or psychological reasons, i.e. out of love, affection etc.

    The measurement of economic activities is in monetary terms, whereas non-economic activities lack money measurement.

    Economic activities have a pragmatic approach, in essence, it deals with things in a practical way. As against this, non-economic activities have an idealistic approach wherein more importance is given to human values instead of money.

    Economic activities result in creation and accumulation of wealth as they are done to earn profit. Unlike non-economic activities which result in mental satisfaction and happiness.

    Economic activities are very important for the economy as they add value to the country’s gross domestic product (GDP). As opposed to non-economic activities, which have no influence over country’s national income.

    Conclusion

    With the above discussion, it is quite clear that the only aspect which distinguishes these two activities is the objective. The same activity can be economic and non-economic at the same time, you can understand this with an example, Suppose a father is taking his child to school by Van, this is a non-economic activity, as he drops his son out of affection and care, but if there are five other children apart from his son going in the Van who pays money for conveyance to him, then that is an economic activity, as the person is getting money for that service.

    So, when a person is providing services out of love or affection, that is non-economic but when that person charges money for providing such service, it is called economic activity.

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    स्रोत : keydifferences.com

    What is Economic and Non

    Economic activity is any activity that is carried out in return for capital. In this blog, we will understand what contrast it has with Non-Economic activities.

    Category>Economics

    What is Economic and Non-Economic Activity?

    Ashesh AnandFeb 26, 2022

    Economic activity is any human activity that is carried out in return for money or the value of money. Workers in a factory, for example, work to earn a living. Non-economic activities, on the other hand, are any acts that have no monetary motivation and are carried out with feelings of love, sympathy, or humanity.

    Playing in the garden, dancing, a woman preparing dinner for the family, or a boy assisting an elderly man across a road, to name a few examples.

    The main distinction between economic and non-economic activities is that economic activities are carried out to meet human requirements, whilst non-economic activities are carried out to satisfy psychological needs. So, read on to learn more about the contrasts between these two forms of human activities.

    Also Read | Different types of Economic Indicators

    What Are Economic Activities?

    The creation, distribution, exchange, and consumption of products and services are all examples of economic activities. Humans engage in economic activities in order to earn a living and accumulate wealth.

    A trader, an agriculturist, a manufacturer, a doctor, a teacher, and factory laborers are just a few examples of economic activity. People engage in these activities in order to earn a living and accumulate riches.

    The production, distribution, exchange, and consumption of products and services are at the heart of economic activity. Economic activity returns can be stated in monetary terms. A businessperson makes a profit, doctor bills for his services, and a farmer raises veggies to sell at the market.

    Also Read | What is Market Socialism

    Types of Economic Activities

    Actually, economic activities include anything that includes money or the exchange of goods or services. The following are the three sorts of economic activities:

    Business 

    This economic activity involves providing goods and services to meet daily human requirements in order to make a profit.

    Profession

    A profession can also be defined as an occupation or a professional vocation that provides specialized services for a fee.

    Employment 

    The activity is carried out under the terms of a contract between the employer and the employee. In this case, the employee works for the company and is compensated (wages or salary).

    Also Read | Concept of Scarcity in Economics

    Watch this: What is economic value, and who creates it? | Mariana Mazzucato

    Economic Activity Characteristics

    The following are some of the most important aspects of economic activities:

    Economic considerations

    The basic goal of economic activity is to make a profit and hence accumulate wealth. Individuals engage in these activities in order to earn a living through economic gain.

    Use of Resources

    Economic activities necessitate the use of resources such as land, labor, and capital.

    Rational Usage

    Profit maximization is achieved by wisely allocating scarce resources in economic operations. This includes maximizing the use of land, labor, capital, and any other production-related resources.

    Legally enforceable

    Only legitimate actions that are undertaken for monetary benefit can be classified as economic activities. Burglary, theft, smuggling, and other illegal acts, for example, cannot be included in the definition of economic activity.

    Accepted in Society

    Social norms must be followed in all economic activities. They can't be unpopular in society.

    Also Read | Types of Economic Theory

    What are Non-Economic Activities?

    Non-economic activities are actions conducted solely for the sake of love, affection, sympathy, or patriotism. These activities are carried out voluntarily with the goal of providing free services to others, hence they cannot be quantified in terms of money.

    It encompasses any acts that are carried out to satisfy human emotions, whether they are social, religious, cultural, personal, recreational, charitable, or patriotic.

    Examples of non-economic activities are:

    Activities to do in your spare time

    Its sole purpose is to provide enjoyment during idle time. Painting and signing, for example.

    Activities with a Family Commitment

    This activity is committed to and inspired by family. For example, a teacher may educate her or his own child at home, and a doctor may consult his family, among other things.

    Cultural and Religious Activities 

    This activity is both enjoyable and beneficial to one's mental health. Worshiping God and attending the temple, for example.

    Social Welfare Activities

    They are motivated by a strong desire to help or sympathize with others. Donations to the less fortunate, participation in a relief camp to assist individuals impacted by war or natural disasters, and so forth.

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