Self-consumption is a term used to describe the consumption of goods or services by the person or entity that produces them. It refers to the act of using or consuming the products or services for personal or internal use rather than selling or exchanging them in the market. Self-consumption can occur in various contexts, such as in households, businesses, or even at the national level. In this case, self-consumption is considered a non-economic activity.

Self-consumption is characterized by the following key points:

1. Non-economic activity:
Self-consumption is considered a non-economic activity because it does not involve the production of goods or services for the purpose of exchange or sale in the market. Instead, it focuses on the consumption of goods or services for personal or internal use. It is not driven by profit or market transactions.

2. Non-market activity:
Self-consumption is also referred to as a non-market activity because it does not take place within the realm of market transactions. It is not subject to the forces of supply and demand or influenced by market prices. Self-consumed goods or services do not enter the market and are not available for purchase by others.

3. Personal or internal use:
Self-consumption involves the consumption of goods or services by the producer or entity that produces them. This can include using self-produced food, energy, or other resources for personal consumption, or using self-produced services within a business or organization. The focus is on meeting internal needs rather than external market demands.

4. Exclusion from economic indicators:
Self-consumption is typically excluded from economic indicators such as GDP (Gross Domestic Product) because it does not contribute to the overall production or output of goods and services in the economy. It is not considered a productive economic activity in the traditional sense.

In conclusion, self-consumption refers to the consumption of goods or services by the person or entity that produces them for personal or internal use. It is considered a non-economic and non-market activity, as it does not involve the production of goods or services for exchange or sale in the market.