What is the difference between economic activities and non-economic activities?

Answer

Points to remember

Activities in economic sector - Teachoo.png

  • Economic Activities - Production of goods and services to add value to the national income.
  • It has two parts - market activities and non-market activities
  • Market activities - activities performed for pay or profit.
  • Non-market activities - production for self-consumption .
  • Non-Economic activity - That does not add value to the national income, like household chores .

Answer to be written

  • The activities that result in the production of goods and services that add value to the national income are called economic activities.
  • Economic activities have two parts — market activities and non-market activities
  • Market activities involve activities performed for pay or profit . These include the production of goods or services , including government services.
  • Non-market activities are the production for self-consumption .
  • Activities that do not contribute to national income , such as a person doing household chores, are called non-economic activities.

 

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.