Distinguish Between Economic Activities and Non-Economic Activities.

By meenakshi|Updated : January 3rd, 2023

The difference between Economic activities and Non-economic activities is that Economic activities are for bringing cash, while non-economical activities provide services without gaining money. Economic activities are those activities that are related to the creation of the product, its trade, circulation, and utilization for the sole purpose of bringing cash or revenue to fulfill human needs with a limited amount of assets. In contrast to it, non-economical activities are the activities that are performed to provide services without gaining money.

Difference Between Economic and Non-Economic Activities

Economic activities are those undertaken for monetary gain, while Non-economic activities are undertaken for personal satisfaction or for social services.

The difference between economic activities and non-economic activities is as under:

  • Motive: The major motive of economic activity is to gain monetary benefits, while non-monetary activities are psychological or social.
  • Approach: The economic activities manage thighs in a down-to-earth, i.e., in a sober-minded approach. It gives importance to human qualities rather than money or cash.
  • Monetary measurements: Money in terms of economic activities is measured in monetary/ financial terms, but cash estimation is required in non-economical activities. 
  • Out Result: Economic activities create assets and wealth, while non-economical ones result in happiness and satisfaction.
  • Contribution to the GDP:  Between these two, only the economic activities contribute to the nation’s GDP.

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FAQs on Distinguish Between Economic Activities and Non-Economic Activities

  • Economic Activities and Non-Economic Activities can be distinguished by considering whether the activities are performed for money or not. The activities that are performed with the motive of earning money are economic activities. In contrast, non-economical activities are performed with the purpose of providing services to mankind.

  • Economic activity is carried out in exchange for money to earn a living. For instance, individuals work in a factory to earn cash. A non-economic activity is an act that is performed without any monetary motive, with feelings of compassion or humanity.

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