differnciate between economic and non economic activities
Answers
Answer:
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. ... As opposed to non-economic activities, which have no influence over country's national income.
Economic Activities -
1. Are undertaken to create something useful, which can be sold or exchanged for something else.
2. Are performed with the motive of earning income or profit.
3. Are measured in monetary terms.
4. Results in creation and accumulation of wealth as they are done to earn profits.
5. Important for economy as they add value to country’s national income.
Eg -a teacher teaching in school for income is an economic activity.
Non Economic Activities -
1. Are undertaken with the aim to provide services without any regard to monetary gain.
2. Are performed due to social or psychological reasons like love, affection etc.
3. No money measurement. Are performed free of cost.
4. Results in mental satisfaction and happiness.
5. Have no direct influence on country’s national income.
Eg- a teacher teaching her child at home out of love is a non economic activity.