Distinguish between economic and non-economic activities?

Question

Answer

¶¶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.

¶¶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.

Answer

Economic activities are those activities of man which are undertaken for earning money. Whereas non economic activities are those activities that are not undertaken for any monetary gain.

Answer

¶Economic activity refers to a human activity related to production and consumption of goods and services for economic gain.¶

¶¶Non-economic activity is an activity performed gladly, with the aim of providing services to others without any regard to monetary gain. Social or psychological, i.e. out of love, affection, etc¶¶

Answer

**Economic Activities**

Economic activities refer to the activities that are undertaken with the primary aim of earning a profit or generating income. These activities revolve around the production, distribution, and consumption of goods and services. Economic activities play a crucial role in the functioning of an economy and contribute to its growth and development. Some examples of economic activities include manufacturing, agriculture, trade, services, and mining.

**Characteristics of Economic Activities:**

1. **Profit Motive:** Economic activities are driven by the motive to earn a profit. Individuals and businesses engage in these activities with the expectation of making a financial gain.

2. **Exchange of Goods and Services:** Economic activities involve the exchange of goods and services between producers, consumers, and intermediaries. This exchange is facilitated through various channels such as markets, shops, and online platforms.

3. **Monetary Transactions:** Economic activities involve monetary transactions. Money acts as a medium of exchange, and prices are determined based on the supply and demand of goods and services.

4. **Value Addition:** Economic activities add value to the resources used in the production process. For example, raw materials are transformed into finished goods through manufacturing activities, increasing their value.

5. **Market Orientation:** Economic activities are influenced by market forces such as demand and supply. Producers adapt their production and pricing strategies based on market conditions to maximize their profits.

**Non-Economic Activities**

Non-economic activities, on the other hand, refer to activities that are not performed with the intention of earning a profit or generating income. These activities are generally driven by social, cultural, or personal motives. Non-economic activities do not involve monetary transactions and are not directly related to the production and distribution of goods and services. Some examples of non-economic activities include household chores, volunteering, hobbies, sports, and leisure activities.

**Characteristics of Non-Economic Activities:**

1. **No Profit Motive:** Non-economic activities are not driven by the motive of earning a profit. Individuals engage in these activities for personal satisfaction, social interaction, or personal growth.

2. **No Monetary Transactions:** Non-economic activities do not involve monetary transactions. They are often self-driven or performed as part of social or cultural obligations.

3. **Not Market Oriented:** Non-economic activities are not influenced by market forces. The value of these activities is not determined by their market price but rather by the personal fulfillment and enjoyment they provide.

4. **Personal Satisfaction or Well-being:** Non-economic activities are often undertaken for personal satisfaction, well-being, or leisure. They contribute to the overall quality of life and personal development.

5. **Non-Measurable:** Unlike economic activities, non-economic activities are not easily quantifiable or measurable in terms of monetary value. Their value lies in the intangible benefits they provide rather than in economic gains.

In conclusion, economic activities are primarily driven by the motive of earning a profit, involve monetary transactions, and contribute to the production and distribution of goods and services. Non-economic activities, on the other hand, are not performed with the intention of earning a profit, do not involve monetary transactions, and are driven by personal, social, or cultural motives.

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