Explain what is market activity and non-market activity?
Answers
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
Hi!
Market activity and non-market activity are both types of economic activities. Their main differentiation point is in terms of remuneration.
Market activities involve some sort of remuneration for the activity performed. Basically this means that the worker is paid or expecting money for performing the activity. This means that there is profit involved and it usually contributes to the economic growth of the nation. An example would be growing of cotton -- the farmer is paid for this.
Non-market activities on the other hand is done for the purpose of self-consumption. This means that the worker is not getting paid for his/her services. Most of the time, they do not contribute to the economic growth. No profit is involved. An example would be a mother performing chores in the house. While her work is valuable, she doesn't get paid for her work nor does it contribute to the economic growth of the nation.
Hope this helps!
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