Difference between Economic Activities and Non-Economic Activities

Economic activities refer to those activities that are undertaken with the intention of earning a profit or income, whereas non-economic activities are those activities that are undertaken for personal satisfaction or welfare without any intention of earning a profit. Let us discuss the difference between economic and non-economic activities in detail:

1. Definition
- Economic activities refer to the activities that are undertaken to earn a profit or income.
- Non-economic activities refer to the activities that are undertaken for personal satisfaction or welfare without any intention of earning a profit.

2. Objective
- The main objective of economic activities is to earn a profit or income.
- The main objective of non-economic activities is personal satisfaction or welfare.

3. Involvement of Money
- Economic activities involve monetary transactions.
- Non-economic activities do not involve monetary transactions.

4. Market Transactions
- Economic activities are market transactions that involve buying and selling of goods and services.
- Non-economic activities are non-market transactions that do not involve buying and selling of goods and services.

5. Production
- Economic activities involve the production of goods and services for sale.
- Non-economic activities do not involve the production of goods and services for sale.

6. Value Addition
- Economic activities involve value addition to the goods or services produced.
- Non-economic activities do not involve value addition to the goods or services produced.

7. Employment Generation
- Economic activities generate employment opportunities.
- Non-economic activities do not generate employment opportunities.

8. Impact on GDP
- Economic activities contribute to the Gross Domestic Product (GDP) of a country.
- Non-economic activities do not contribute to the Gross Domestic Product (GDP) of a country.

Conclusion:
In conclusion, economic activities are those activities that are undertaken to earn a profit or income, while non-economic activities are those activities that are undertaken for personal satisfaction or welfare without any intention of earning a profit. Economic activities involve monetary transactions, market transactions, production, value addition, employment generation, and contribute to the Gross Domestic Product (GDP) of a country. Non-economic activities, on the other hand, do not involve monetary transactions, market transactions, production, value addition, employment generation, and do not contribute to the Gross Domestic Product (GDP) of a country.

Economic activity refer to those activities which are undertaken to earn a living
for example - worker working in a factor

activities which are not concerned with creation of money or wealth are known as
non- economic activities
for example - house wife cooking food for her family