Question

distinguish between economic and non economic activities

Answer 1

BASIS FOR COMPARISONECONOMIC ACTIVITYNON-ECONOMIC ACTIVITYMeaningEconomic 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.MotiveEconomic, i.e. to earn money.Social or psychological, i.e. out of love, affection, etc.Money measurementMeasured in monetary terms.Lacks money measurement.ApproachPragmaticIdealisticResults inCreation of wealth and assets.Satisfaction and happiness.National IncomeAdds value to national income.Does not affects national income.

Answer 2

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.


BASIS FOR COMPARISONECONOMIC ACTIVITYNON-ECONOMIC ACTIVITYMeaningEconomic 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.MotiveEconomic, i.e. to earn money.Social or psychological, i.e. out of love, affection, etc.Money measurementMeasured in monetary terms.Lacks money measurement.ApproachPragmaticIdealisticResults inCreation of wealth and assets.Satisfaction and happiness.National IncomeAdds value to national income.Does not affects national income.