Differentiate between market and non market activities with relevant examples
Answers
Following are the difference between market activities and non market activities.
Market Activities -
1) Market activities involve those activities which are performed basically for the purpose of the sale in the market and that include remuneration or profit. In simple words, the main motive of doing such activities is to earn profit by selling the output in the market.
2) It includes production of goods and services, including the government services.
3) Example : a vegetable vendor selling vegetables , a grocer selling grocery, a shoemaker selling shoes, a general merchant selling consumer durable etc.
Non market Activities -
1) Non market activities are those activities primarily undertaken for the purpose of self-consumption. These activities don't give profit as they are for self consumption.
2) The output of the non market activities is neither for sale in the market nor for earning profit. These activities can be for consumption and processing of primary products for one's own use.
3) Example : A farmer cultivates primarily for himself and his family and not for earning profit.