Question

Distinguish between market and non-market activities with three points of distinction

CBSE Class IX Social Science SA (3 Marks)

Answer 1

Market Activities:

(i)   It involves the remuneration paid to anyone who performs an activity for earning money.
(ii)   It gives profit.
(iii)   For example : Government services.

Non—Market Activities:

(i)     Production is for self-consumption.
(ii)   It doesn't give any profit
(iii) For example : Processing of primary products for production of goods and one's own self-services

Answer 2

1) Market activity involved those activities which are performed basically for the purpose of the sale in the market and that include profit. The main motive of doing such activities to earn money by selling the output in the market. Whereas non market activities are those activities primarily undertaken for the purpose of self consumption. This activity don't give profit as they are for self consumption.
2) It includes the production of goods and services including the government services whereas it neither for sale in the market nor for earning profit . This activity can't be for construction and processing of primary products for one's own use.
3) Example- a vegetable vendor selling vegetables, a shoemaker selling shoes. Whereas example- a farmer cultivate primarily for himself and his family and not for earning profit .