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What are Economic and Non Economic Activities?


Economics is a social science and man is a social being. Hence, within an economy every person has to perform several activities either to earn money or to satisfy various wants.

These include cultivation and farming, industrial works, teaching, marketing, washing clothes etc. Thus, all these activities are performing to earn money in order to satisfy several wants and to maintain a peaceful and comfortable life.

Therefore, we can say that, activities which are performed with a view to earning wealth or income are called economic activities. Economics deals with all the economic activities of men. In our daily life, we are engaged in several activities related with earning and spending of money (income or wealth) to satisfy our unlimited wants. These are all the economic activities.


Hence, the main economic activities are categorized into following types; such as:

(i) Production:

It is the main or primary economic activity of human beings. It means creation of utility to satisfy human wants by producing several goods and services. For instance, a teacher is teaching in the classroom, a carpenter is making wooden furniture’s, a farmer is cultivating crops etc. are the examples of production.

(ii) Consumption:


It is also another important economic activity which is concerned with use of goods and services for the direct satisfaction of human wants. Consumption means simply the destruction of utility. For instance, by consuming foodstuffs a consumer can satisfy his or her want for food or hunger. Similarly, a glass of water can quench the thirst of a consumer, who is feeling very thirsty.

(iii) Distribution:

Pricing of different factors of production is known as distribution. That is, fixation of rent, wages, interest etc, comes under the theory of distribution. Hence, it is also termed as ‘Factor- pricing’ theory.

(iv) Exchange:


This is also considered as an important economic activity. Exchange means sale and purchase of different goods and services either directly by barter system or through monetary system for the maximization of consumer’s satisfaction or utility.

Thus, the term exchange in monetary system is known as ‘Product Pricing.’ Hence, all the activities related with the production, consumption, distribution and exchange of all goods and services which possess utility and scarce in nature are considered as economic activities. The main aim of these activities is to ensure the satisfaction of human wants.

The important elements of economic activities are:

(i) These must possess utility;

(ii) These are concerned with money or wealth;

(iii) These satisfy the human wants.

On the contrary, non-economic activities are not concerned with money or wealth.These activities are again divided into following groups:

(i) Social Activities:

For instance, attending marriage parties of relatives or friends, birthday parties, cultural festivals and programmes etc.


(ii) Political Activities:

For instance, attending the meetings and seminars of various political parties like Congress, BJP and other local parties.

(iii) Religious Activities

For instance, worshipping of God, donation for constructing temples, churches, mosques etc.


(iv) Charitable Activities:

For instance helping, poor or disabled persons, donation of blood etc.

(v) Parental Activities:

For instance, parents, love, affection, caring etc. to their child or children.


(vi) Recreational Activities:

For instance, playing games, watching television, performing dance or singing etc.

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