Distinguish between economic and non-economic activities.

Solution

Basis

Economic Activities

Non-economic Activities

1. Motive

2. Satisfaction

3. Acquiring assets

4. Money measurement

5. Types of activities

• Activities having economic motive behind them are economic activities.

• These activities satisfy our day-to-day needs.

• Funds obtained through economic activities may be used for acquiring assets.

• These activites are measured in term of money.

• Business, employment and profession are the types of economic activities.

• Activities having sentimental and emotional motive are non-economic activities.

• These activit-ies are performed to obtain emotio-nal and phychological pleasure.

• No money involve in these activities.

• These can not be measured in term of money.

• Non-economic activities do not have different types.

Tips: -

Important

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