Economy

Difference between economic and non-economic activities

Main difference

The main difference between economic activities and non-economic activities is that economic activity is carried out to satisfy human needs, while non-economic activities are carried out to obtain psychological satisfaction.

Economic activities versus non-economic activities

Economic activity refers to a human activity related to the production and consumption of goods and services to obtain economic benefits. Non-economic activity is an activity that is done with pleasure, to provide services to others without regard to monetary gain. The main objective of economic activities is to earn a living and create wealth. On the other hand, the main objective of non-economic activities is to obtain some social, cultural, religious or recreational satisfaction. The output of economic activities measured in terms of money, for example, the salary of a teacher, the fees of a doctor, and the earnings of a businessman. But the result of non-economic activities cannot be measured in terms of money. Economic activities can arise between the supervisor and the workers or between the producers and the consumers. Non-economic activities can be between members of a family, social worker and those cared for, etc. The exemption to carry out economic operations is to obtain income or profits. Non-economic activities are carried out to obtain mental satisfaction. Economic activities are carried out regularly and during most of life. It may be that one stops working. Non-economic activities that are carried out during free or leisure time, which is very limited. The exemption to carry out economic operations is to obtain income or profits. Non-economic activities are carried out to obtain mental satisfaction. Economic activities are carried out regularly and during most of life. It may be that one stops working. Non-economic activities that are carried out during free or leisure time, which is very limited. The exemption to carry out economic operations is to obtain income or profits. Non-economic activities are carried out to obtain mental satisfaction. Economic activities are carried out regularly and during most of life. It may be that one stops working. Non-economic activities that are carried out during free or leisure time, which is very limited.

Comparative chart

Economic activities Non-economic activities
The economic operation refers to a human activity related to the production and consumption of goods and services for economic gain. Non-economic activity is an activity that is done with pleasure, to provide services to others without regard to monetary gain.
goals
These activities are related to wealth or money. These activities do not have to do with money but rather they perform an act of pleasure, love, affection.
Reason
Economic Social or psychological
Types
These are divided into production, consumption, distribution and exchange. These are divided into social, political, religious, charitable, parenting, and recreational activities.
Money measurement
Measured in monetary terms. It lacks a monetary measure.
Results in
Creation of wealth and heritage. Satisfaction and happiness.
Scope
These activities take place between an employer and an employee. These activities generally take place between family members or between social workers.
National income
Add value to national income. It does not affect the national income.
Getting closer
Pragmatic Pragmatic

What are economic activities?

Human activities that are carried out in exchange for money or monetary value are called economic activities. Economic action is the activity of manufacturing, providing, buying or selling goods or services. Any activity that involves producing, distributing or consuming goods or services is an economic activity. Economic actions exist at all levels within a society. Furthermore, any activity that involves money or the exchange of products or services are economic activities. In other words, economic activities are those efforts made by man to obtain income, money, wealth for his life and ensure the maximum satisfaction of his needs with limited and scarce means. Economic activity is the process by which the stock of resources or capital stock produces a flow of production of goods and services that people use in the partial satisfaction of their unlimited desires. This process involves not only the production of goods and services but their distribution among the various members of the community. Gross domestic product or GDP is a way of evaluating economic activity, and the current degree of economic activity and forecasts for its future level can significantly affect business activity and profits, as well as inflation and interest rates. The types of classification of economic activities are: Gross domestic product or GDP is a way of evaluating economic activity, and the current degree of economic activity and forecasts for its future level can significantly affect business activity and earnings, as well as inflation and interest rates. The types of economic activity classification are: Gross domestic product or GDP is a way of evaluating economic activity, and the degree of current economic activity and forecasts for its future level can significantly affect business activity and profits, as well as inflation and interest rates. The types of classification of economic activities are: and the current degree of economic activity and forecasts for its future level can significantly affect business activity and earnings, as well as inflation and interest rates. The types of classification of economic activities are: and the current degree of economic activity and forecasts for its future level can significantly affect business activity and earnings, as well as inflation and interest rates. The types of classification of economic activities are:

  • Profession
  • job
  • Business

Important elements of economic activities

  • These must have utility;
  • These are related to money or wealth;
  • These satisfy humans

What are non-economic activities?

Humanity is hungry by nature, and whenever it engages in some activity most of the time, its motive is to earn money. However, there are certain activities that are an exception and are called non-economic activities. Activities that are carried out to satisfy social, religious, cultural and sentimental requirements are called non-economic activities. Non-economic activity is an activity that is done with pleasure, to provide services to others. People carry out non-economic activities for reasons of love, sympathy, religion, patriotism, etc. These activities are again divided into the following groups:

  • Social activities
  • Political Activities
  • Religious activities
  • Charity activities
  • Parent activities
  • Recreational activities

Key differences

  1. An activity related to the production and consumption of goods and services for economic gain is known as economic activities. An activity that is done with pleasure, to provide services without regard to monetary gain, is known as a non-economic activity.
  2. The scope of economic activities is in monetary terms, while non-economic activities lack monetary scope.
  3. Economic activities result in the creation and accumulation of wealth as they are done for profit. Unlike non-economic actions that result in satisfaction and mental happiness.
  4. Economic acts are carried out for economic reasons, that is, to obtain a profit. On the other hand, non-economic events carried out for social or psychological reasons, that is, for love, affection, etc.
  5. Economic activities have a practical focus; in essence, it treats things realistically. Compared to this, non-economic activities have an idealistic approach in which more importance is given to human values ​​rather than money.
  6. Economic facts are very important to the economy as they add value to the country’s gross domestic product (GDP). Unlike non-economic events, which do not influence the national income of the country.

Final Thought

Through the above discussion, he rather explains that the only distinguishing characteristic of these two activities is purpose. The same activity can be economic and non-economic at this time; You can perceive this with an example, suppose a father takes his son to school with Van. This is a non-economic action, as you leave your child out of love and care, but if there are five other children separated from your child who are in the Van and pay you money for the means of transportation, then that is an economic activity. , since the person is acquiring money for that service. Consequently, when a person is providing divine services out of love or affection, that is not economic, but when that person charges money to provide such service, it is called economic activity.

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