Difference Between Economic Activity and Non-Economic Activity


Human activity is an activity performed by a human being to meet his/her needs and wants or maybe for personal satisfaction. Human activities can be categorised into economic and non-economic activities.

Particulars Economic Activity Non-Economic Activity
Definition Economic activities are those activities which are undertaken to earn money or financial gain for livelihood.
e.g., Burger seller selling Burger
Non-economic activities are those activities which are undertaken for the sake of pleasure, performed out of love, sympathy, sentiments etc.
e.g., Mother cooks for her family
Motive The sole motive is to earn money or financial gain.
e.g., Working as an accountant.
Undertaken for the satisfaction of social psychological or emotional needs.
e.g., Visiting mosque
Money Measurement All economic activities can be valued in monetary terms.
e.g., Doctor charges ₹500 as consultation fee.
Non-economic activities cannot be valued in monetary terms. These are an expression of a thought, feeling or a gesture.
e.g., An NGO distributes free clothes to poor children
Relationship Economic activities are related to the creation of wealth.
eg., Jack saved part of his salary to purchase a house of his won.
Non-economic activities do not create wealth.
e.g., Money received as a donation is spent on charity work
Outcome All economic activities result in the production,  procurement, distribution and consumption of goods and services.

e.g., Xioami produces cell phones and sells across India through its distributors.

The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity.
e.g., Sonia enjoys teaching orphans in an orphanage.
Duration Economic activities are repetitive. They are done on a regular basis to earn a living.
e.g., Ice-cream seller sells ice creams every evening.
Non-economic activities may not be undertaken regularly. Usually, they are done during free time.
e.g., Sachin visits an orphanage in his free time.
Source of Initiation Economic activities are initiated to satisfy human needs and wants. Non-economic activities are initiated to satisfy emotional or sentimental pleasures.


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