Economic activities refer to the actions of the individuals associated with the manufacturing and consumption of products and services. These are done for monetary gain. Non- Economic activities are those activities done to offer products or services to others with no purpose of financial gain.
Economic and Non-Economic Activities teach multiple factors to mankind. When individuals complete a particular activity, they have to exhibit some skills such as leadership qualities and teamwork abilities etc and enhance these skills by involving them more in the activities. There are two types of activities in which any individual can involve. They include Economic and Non-Economic Activities.
Understanding the difference between economic and non-economic activities is essential to evaluate the performed activities accordingly. All the activities associated with producing goods and services are termed Economic activities when done with the motive of financial gain. People perform these activities for a living. Activities of the people can be classified further to understand the context. Non-Economic activities are those done to provide products or services to other individuals. These activities involve personal satisfaction. E.g., A homemaker performs a routine of cooking, cleaning, and other day-today-tasks.
Economic Activities are performed in almost all sectors of society. People perform these activities for a living and gain income from these activities. All the economic activities have significant characteristics to acquire wealth, earn a livelihood and facilitate economic growth. Activities performed must be lawful and legally binding to gain income. Unlawful activities like theft, smuggling, drug dealing, burglary are not economic activities.
Economic activities performed by the individuals include:
Individuals perform one or a combination of these activities as Economic activities. There are other economic activities that individuals undertake. They include – the service industry, intangible creations from the human intellect sector, raw material & corporate sector jobs, manufacturing, and the decision-making sector.
Economic activities are categorized as primary, secondary, and tertiary sector activities.
Primary sector activities depend on the environment and use the earth’s resources like land, minerals, water, and building to produce those end products. Agriculture is the main activity under the primary sector. Other activities which are part of the primary sector include mining, hunting, forestry, grazing, fishing, etc.
All industries involved in manufacturing products are categorized as Secondary sectors. Money mobilization from this sector enables to achieve economic development and growth. All industries are automobile production, construction, chemical and engineering, energy utilities, shipbuilding, textile production, aerospace manufacturing, handicrafts, etc.
Services that are provided to the common public are categorized under the tertiary sector. This sector includes banking, insurance, healthcare, wholesale, retail, and media services. etc.
Non-Economic Activities are those activities that are performed without any aim of returns or income. Individuals achieve self-satisfaction and no remuneration returns. Oher individual sentiments are addressed, and activities are initiated for personal content. For Example, an individual is serving disabled persons. Here there is no element of income or profit involved. Activities relating to helping disabled persons are for personal content and rendering services. Other examples of Non-Economic Activities include person doing social work, homemaker managing daily tasks, cultural & religious activities, Free time activities, and Family commitment activities.
The difference between economic and non-economic activities helps us differentiate the activities performed by the individuals. Different activities are undertaken in the economy when understood by the difference between economic and non-economic activities, which facilitates the analysis of the activities.
Economic activities: Activities are done for a living
Non-economic activities: Activities are done for personal satisfaction.
Economic activities: Economic growth & development is achieved.
Non-economic activities: Psychological and social change is achieved.
Economic activities: Economic activities are done in three sectors – primary, secondary, and tertiary sectors.
Non-economic activities: Activities are based on interests, habits, hobbies; hence no sectors are involved.
Economic activities: Main aim is to earn financial remuneration by providing services.
Non-economic activities: The main idea includes psychologically and emotionally developing by performing such activities.
Economic activities: Business & employment are the superior outcomes of performing these activities.
Non-economic activities: Personal satisfaction and social responsibility are achieved by performing non-economic activities.
Economic activity examples are as follows. Goods and services have flowed into the economy for which income is returned.
Non-Economic activity examples are as follows. Some activities are done but not for income that falls under non-economic activities. Non-Economic activities do not contribute to the flow of goods and services to the economy and are majorly done for personal satisfaction & out of compassion, love, and care. These activities create a negligible impact on the economy. As they are not produced to the market as a product, we cannot measure the valuation of these services.
To understand the difference between economic and non-economic activities, we can conclude that activities performed can combine economic and non-economic activities.
When a mother teaches her child out of care, it is non-economical activity. But when the mother teaches a few other children and her child, other children pay for the services. This is economic activity as activities involve earning income and creating a utility. Also, satisfaction and monetary terms can measure the services provided.
Economic and non-economic activities examples help us understand that providing services with non-profit motive are non-economic activities and when paid for such services are economic activities.
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