Logo
Overview

Economic and Non-Economic Activities

January 15, 2025
2 min read

Classification of Human Activities

Human activities can be broadly classified into two categories based on their purpose and end result: Economic Activities and Non-Economic Activities.

Human Activities

Economic Activities

Non-Economic Activities

Generate Income/Wealth

No Income Generation

Examples: Business, Job, Farming

Examples: Cooking at home, Volunteering

1. Economic Activities

Economic activities are those that involve money or are performed in exchange for money or money’s worth. The primary motive is to earn a livelihood or profit.

Note

Key Definitions:

  • Market: A place where people engage in the exchange of goods and services, usually for money.
  • Fee: A payment made to a professional (like a doctor or lawyer) for their advice or services.
  • Money’s Worth: The monetary value a person places on an object based on the benefit they derive from it.

Examples:

  • A pilot flying a commercial plane for an airline.
  • A shopkeeper selling school bags and uniforms.
  • A farmer selling produce in the market.
  • A lawyer arguing a case for a fee.
  • A truck driver transporting goods.

2. Non-Economic Activities

Non-economic activities are those that do not generate income or wealth. These are performed out of feelings like love, gratitude, care, respect, or social duty.

Examples:

  • Parents cooking food for the family.
  • Youth taking care of grandparents.
  • Volunteering to teach neighborhood kids for free.
  • Family members helping renovate their own house.
Tip

Think About It: If a teacher teaches in a school, she gets a salary (Economic). If the same teacher teaches her own child at home, she gets no money (Non-Economic). The nature of the activity is the same (teaching), but the purpose changes the classification.

Summary Table

FeatureEconomic ActivityNon-Economic Activity
GoalTo earn money or wealth.Personal satisfaction, social obligation, love.
RewardMonetary (Money).Psychological (Happiness, Gratitude).
ExampleDoctor treating a patient in a hospital.Doctor treating their own child at home.