Non-Economic Activities

Any human activity that is carried out in exchange for money or the value of money is referred to as economic activity. Workers in a factory, for example, are motivated by the desire to make a living. Those who engage in non-economic activities do so because they are motivated by emotions such as love, sympathy, or humanity rather than by monetary gain.

Examples include children playing in the garden or dancing, a woman preparing dinner for the family, or a boy assisting an elderly man across a busy street, to name a few.

When comparing economic and non-economic activities, the most significant distinction is that economic activities are carried out to meet human requirements, whereas non-economic activities are carried out in order to satisfy psychological needs. Continue reading to learn more about the differences and similarities between these two types of human activities.

Non-Economic Activities

Non-economic activities are those that are carried out solely for the sake of love, affection, sympathy, or patriotism rather than for monetary gain. These activities are carried out voluntarily with the goal of providing free services to others, and as a result, they are unable to be quantified in terms of monetary value.

It includes any actions taken to satisfy human emotions, whether they are social, religious, cultural, personal, recreational, charitable, or patriotic in nature. It also includes any actions taken to satisfy human emotions that are not religious in nature.

Examples of Non-Economic Activities 

• Activities to participate in during your spare time: Its sole purpose is to provide entertainment during periods of inactivity. For example, painting and singing are both acceptable.

• Activities with a Strong Sense of Family Commitment: This activity is dedicated to and inspired by the members of the family. An educator might educate her or his own child at home, and a doctor might consult with his or her own family, among other things.

• Activities in the Cultural and Religious Fields: This activity is both pleasurable and beneficial to one’s mental well-being at the same time. For example, God’s worship and attendance at the temple are both acceptable.

• Activities in the field of social welfare: A strong desire to assist or sympathise with others drives their actions and motivations. Making charitable contributions to the less fortunate, volunteering at a disaster relief camp to assist those affected by war or natural disasters, and so on.

Characteristics of Non-Economic Activities

In order to be classified as non-economic activities, the following characteristics must be met:

• Self-Satisfaction: Non-economic activities are those that are carried out solely for the satisfaction of one’s own desires.

• Obligatory: Non-economic activities can be carried out as a matter of obligation or compulsion in order to comply with societal norms, even if they do not generate any monetary gain.

• There will be no financial compensation: In any such activity, the most distinguishing feature is that the individual who engages in it does not receive any financial benefit from his or her participation. As a result, these activities can no longer be considered to be economically necessary. These are either for entertainment purposes only or are socially obligatory.

Difference Between Economic and Non-Economic Activities

It is possible to distinguish between economic and non-economic activities on the basis of the following characteristics:

• Economic activities are those that involve the production and consumption of goods and services for the purpose of gaining a monetary profit or benefit. Non-economic activity is defined as an activity that is carried out joyfully with the goal of providing services to others without regard for monetary compensation.
• Economic operations are carried out with the goal of generating profit in mind. However, non-economic actions are carried out for social or psychological reasons such as love or affection, rather than for monetary gain.
• However, non-economic activities are not measured in monetary terms; instead, they are measured in non-monetary terms.
• A pragmatic approach is taken by economic activities, which is to say that they approach problems in a practical manner. A more idealistic approach is taken by non-economic activities, which give higher precedence to human values than to financial gain.
• Economic activities, by virtue of the fact that they are carried out for profit, result in the creation and accumulation of wealth. Activities that are not economically rewarding, on the other hand, provide mental gratification and enjoyment.
• In order for the economy to function properly, economic activities must contribute to the growth of the country’s gross domestic product (GDP). Non-economic activities, on the other hand, have no impact on a country’s gross national income (national income).

Conclusion

Non-economic activities are those that are carried out solely for the sake of love, affection, sympathy, or patriotism rather than for monetary gain. These activities are carried out voluntarily with the goal of providing free services to others, and as a result, they are unable to be quantified in terms of monetary value. Non-economic activities are those that are carried out solely for the satisfaction of one’s own desires. In any such activity, the most distinguishing feature is that the individual who engages in it does not receive any financial benefit from his or her participation. As a result, these activities can no longer be considered to be economically necessary. These are either for entertainment purposes only or are socially obligatory. Non-economic activities are not measured in monetary terms; instead, they are measured in non-monetary terms.