Question

Describe whether the following transaction are economic or non economic transaction and clarify the reason for it
1 assets sold to Mira on credit for rupees 22,000
2 rupees 8000 paid for wages
3 an order is received to supply goods of 10000

Answer 1

Answer:

1. Economic Activity

2. Economic Activity

3. Non-economic Activity

Difference Between Economic and Non-economic Activities:

Economic Activities are those activities which involve the use of money.

Non-economic activities are those activities which are performed out of love, sympathy, affection etc, without the use of money.

Explanation:

1. It is an economic activity because it involves sale of machinery for money.

2. It is an economic activity because money is involved.

3. It is a non-economic activity because no sale/exchange of goods or services or money is involved. Just the order is placed.