Long answer type Questions. Answer each of them in about 50 words.
24. What is the economic and non-economic activity? Explain with illustration
25. ‘’Godown creates time utility’’- Discuss.
26. Explain the principle of insurable interest.
Answers
Answer:
24. What is the economic and non-economic activity? Explain with illustration
economic vs non-economic activitiesEvery 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. So, check out this article to get some more differences amidst these two types of human activities.