Difference Between Economic And Non-economic Activities Explained With Examples

Introduction

Economic activities refer to all the physical and mental activities performed by the individuals with the aim of generating income. These activities play direct role in the economic development of the country. On the other hand, non-economic activities are those activities or actions performed with the aim of personal satisfaction, sake of pleasure etc. These activities do not play direct role in economic development.

Difference Between Economic And Non-economic Activities 

The key differences between economic activities and non-economic activities are as follows:

1. Meaning

Economic Activities: Activities performed for economic gain such as teaching, business etc.

Non-economic Activities: Activities which are not performed for economic gain or income. They do not give any financial return such as cooking, donating blood, volunteering etc.

2. Characteristics

Economic Activities: The main characteristics of these activities include:

- They are income oriented

- They have monetary value

- Contribution To GDP

Non-economic Activities: Key characteristics of the these activities are:

- They do not generate any income

- They have no role in GDP

- They are based on emotion

3. Objective

Economic Activities: There are performed to earn profit or earn a livelihood. 

Non-economic Activities: These are performed for self-satisfaction only.

4. Expectation

Economic Activities: Creation of monetary income. It means all the physical or mental activities are done to earn money.

Non-economic Activities: No expectation of monetary income, only psychological satisfaction. 

5. Measurement

Economics Activities: These activities can be measured in terms of money.

Non-economic Activities: Cannot be measured in monetary terms.

6. Outcome Or Result

Economic Activities: Satisfaction of human needs through wealth and income.

Non-economic Activities: Mental satisfaction and personal pleasure.

7. Duration

Economic Activities: Performed regularly to satisfy one's financial needs.

Non-economic Activities: Performed for limited time or during spare time only.

8. Impact In National Income

Economic Activities: These activities affect national income of the country.

Non-economic Activities: These activities do not make any impact to national income.

9. Examples

Economic Activities: Business, profession, employment etc. are some examples of economic activities

Non-economic Activities: Domestic work, social services etc. are some examples of non-economic activities.

Economic Vs Non-economic Activities (Comparison Table)

Aspect	Economic Activities	Non-economic Activities
Purpose	Earn Money	Self-satisfaction
Measurement	Yes	No
Outcome	Financial gain	Satisfaction
Impact On GDP	Yes	No
Duration	Long-term	Limited Time
Examples	Business, profession etc.	Social work, cooking etc.

Comparison Between Economic Activities And Non-economic Activities In Short

* Economic activities involve all physical and mental activities or actions that are performed to generate income. On the contrary, non-economic activities involve those actions that are perform for personal satisfaction.

* Economic activities have monetary value but non-economic activities have no monetary value.

* Economic activities are performed regularly and for long period of time. But non-economic activities are done for limited period of time only.

* Economic activities have direct impact on the economic growth but non-economic activities have no role