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Explain with example meaning of Economic and Non – economic activity.

Vidyadip · Accepted Answer

Introduction : * Primitive man was self – sufficient. He could satisfy his needs himself. * As the needs increase, to satisfy all his needs – man started economic activities in forms of trade, business, employment or profession, Farmer did farming for others, potters made earthen, vessels, blacksmith made instruments, cobbler, made shoes,a tailor sewed clothes,, employers worked in an office or a factory and started earning, doctors m Lawyers, Chartered Accountants teachers all work to satisfy their needs. * They work and stake money for the work they perform to satisfy their needs. * They render their services their activities are done for money so it is called economic activity, * A person who without any expectation of financial reward, performs social service, motivated by patriotism or humanity or render services then it is said that he performs non – economic activity. Man’s economic only keep trade and commerce alive., First of all we shall study economic and non – economic activity in detail. What is economic Activity? : * When a person performs any activity for the sake of gaining financial reward then his activities are called economic activities, Individual satisfies his needs and needs of others from the money gained through economic activities. * Illustration : Farmer products grain, weaver weaves cloth, cobbler makes shoes,tailor sews clothes and gain money from their product or service. So these activities are Economic Activities. * There are tree types of Economic activity : Business, profession, Employment What is Non – economic Activity?: * when a person performs activity without any expectation of financial reward, or without any objective of earning income, it is called non – economic activity. * The aim and objective of this type of activity is to serve nation, state and society. * * Illustration : Blood donation camp by Lions or Rotary Club m, social service by social servant, relief and rescue work at the time of natural calamity, fees of charge treatment to patients by doctors, private, tuition by teachers without having charged any fee etc. are non – economic activities. * Difference between Economic activity and Non – economic activity : Points Economic Activity Non – economic Activity 1. objective It is an activity done for the objective of financial reward. Non – economic activity is done for the objective of service, hobby or prestige. 2. Expectation Expectation force is unsatisfied needs and gaining more wealth. Expectation force is services, patriotism or to gain prestige,, 3. Risk Uncertainty Uncertainty of income and loss are the risk of economic activity. There is no such risk associated with non – economic activity. 4. proportion Economic activities are observed wide – Spread. Spread of Non – economic activities is found on limited scale, 5. Types There are three main types of economic activity, Employment (service ), Business and profession. There is no separate type of non – economic activity. 6. Examples Employed, people (serving employees), driver, cobbler, tailor, carpenter, black smith, farmer are the examples of economic activity. Free of charge treatment to patients, Blood donation camp, free of charge education, rescue work etc. are non – economic activities.

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Points		Economic Activity	Non – economic Activity
$1.$ objective	It is an activity done for the objective of financial reward.		Non – economic activity is done for the objective of service, hobby or prestige.
$2.$ Expectation	Expectation force is unsatisfied needs and gaining more wealth.		Expectation force is services, patriotism or to gain prestige,,
$3.$ Risk $ Uncertainty	Uncertainty of income and loss are the risk of economic activity.		There is no such risk associated with non – economic activity.
$4.$ proportion	Economic activities are observed wide – Spread.		Spread of Non – economic activities is found on limited scale,
$5.$ Types	There are three main types of economic activity, Employment (service ), Business and profession.		There is no separate type of non – economic activity.
$6.$ Examples	Employed, people (serving employees), driver, cobbler, tailor, carpenter, black smith, farmer are the examples of economic activity.		Free of charge treatment to patients, Blood donation camp, free of charge education, rescue work etc. are non – economic activities.

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