Explain the difference between economic and non- economic activities?
Answers
Economic activities:
1) Economic activities refers to a human activity related to production & consumption of goods & services for economic gain.
2) Economic motive is to earn money.
3) Money is measured in monetary terms.
4) It results in creation of wealth & assets.
5) Its value is added to the national income.
6) Example : warehousing, production etc
Non-economic activities:
1) Non-economic activity refers to a activity performed with the aim of providing services to others without any regard to monetary gain.
2) Non-economic motive is social or psychological.
3) Money lacks in measurement.
4) It results in satisfaction & happiness.
5) Its value is not added to the national income.
6) Examples : gardening, fishing etc.
economic capital
activity which contribute to the national income are called economic capital . these are done for PR proffix .
example is manufacturing teaching banking
non economic capital
these activities do not contribute to the national income. these activities are not paid for .
example is is gardening housewife working domestic work