Meaning and Explanation of Economic and Non Economic Activities

Economic Activities

      These include all commercial and industrial activities which are connected with the production and or acquisition of wealth. These are also known as productive activities.

Economic activities can be classified into three types:

  1. Business:

      All economic activities connected with production and exchange of goods and services to earn profit or as a source of income.

  1. Profession:

      When a person provides his services to society on the basis of his specialized knowledge and experience in a particular field is known as profession (e.g.) doctors, professors, engineers, accountants etc.

  • Employment:

      When a person provides his services to another person or any institution on the basis of predetermined terms and conditions (fixed salary) is known as employment.

This may be of three types:

  1. Government Service
  2. Semi Government Service
  3. Private Service

Non-Economic Activities

      These activities are done for personal satisfaction and not to earn profit or income. These are also known as non-productive activities. These activities are done due to following reasons:

  1. Religious
  2. Parental
  3. Patriotic
  4. Social
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