Explain about what is Economic and Non-Economic Activities
Economic Activity
Economic activity is an activity where money is involved is basically known as Economic activity in other definitions, we can say that it is an activity making production, distribution, exchange, and consumption of goods and services known as economic activities.
Let’s understand with an example: Suppose there is a person named “Adam” who goes to the shop daily early in the morning to buy some breakfast items like milk, biscuit, and other things. Adam gives money to the shopkeeper to buy his goods, now the money goes to the shopkeeper, then the shopkeeper uses that money to buy more goods for his shops from other places, so now the money has gone to another place Now, the owner of the other place will use that money to buy something, so you can see there is a cycle where money is transmitted from one place to another, basically an economic activity.
Let’s see another example: Suppose you went to the temple one day, you prayed and you asked God for your wish. so now the process you did to pray to God is basically not included in economic activity But the expenses you spent till to the temple came, like coming to the temple by taxi and buying prasad to offer it to God, etc. are included in economic activity.
Easy Definition
” Economic activity is an activity done for earning money is known as economic activity”
Non-Economic Activity
Non-Economic activity is an activity where the money is not involved but the involvement of rendering services to others without getting any motive to earn money/gain. This type of activity is known as “Non-Economic activity.
In simple words, when you do any type of activity where there is no concern with the creation of money like Donating blood, teaching your own child, providing knowledge to others free of cost, charitable activities, etc are included in the non-economic activity.
Easy Definition
“Non-Economic activities are those activities where there is no motive to earn money but to provide services to other is known as “non-economic activity”
