What is their economic and non economic activities
Answers
There are many activities but these activities differ from person to person. Some people work at home and in offices, children study and play and the elderly people spend their time in prayer, watchin TV etc. The activities can be mainly classified as Economic and Non-Economic Activities.
Economic Activities
Activites that are done to earn money and equire wealth is an economic activity. Working in the office, working on the farm and teaching, banking etc comes under economic activities.
Non-Economic Activities
Activities that are done for free are called non-economic activities. non economic activitie are done for reasons not to earn money such as religion, friendship etc.
Eg: If some one loves gardening and does it for free it is a non economic activity if the person is paid for gardening it is an economic activity.
The difference between economic and non economic activities are:
Economic activities are measured using money and they must be legal while non economic activities are not measured by using money.
Types of Econmic Activities:
consumption activities are those activities that use goods and services to directly satisfy wants.
Production
Production is a process of combining various material and inputs and inputs in order to make something for consumption. It is the act of creating output, a good or service which has value and contributes to the utility of individuals. Production activity increaces the of value of goods.
Exchange
Exchange is an economic transaction where goods or services are transferred from the provider for a return of relative value from the receiver in a manner that advances the economic interests of both parties.
Distribution
Economic activity creats wealth by using land, labour, capital and enterprise.
The division of wealth between these factors is called distribution. The wealth is distributed in the form of rent,wages, interest and profit.
Economic activities are classified based on how money is earned.
The three main ways of earning money are throughA professionService or employmentBussiness
A profession requires special qualification and training for example only a lawyer can provide legal advise, and only a doctor can treat sick people.
Professional people charge for their services. Example teachers are paid to teach in the schools.
Bussiness is term that covers different types of economic activities such as producing or distributing goods or providing services a bussiness aims to make a profit and also to satisfy customers.
Economic Activities :-
- These activities give an income in return.
- These are done to earn a livelihood.
- For Example :- People going for work in factories ,farm , banks, hospitals,schools,etc.
Non Economic Activites :-
- These activities do not give any income in return.
- These are done out of compassion ,love and care.
- For Example:- Doing social work, helping the poor, going to temple etc.