Differentiate between economics activities and non-economics activities.

Human performs the different type of activities in their life for the different purpose and these activities can be classified into two categories, Economic or non-economic activities. Economic activities are those which are done with the purpose of earning money and non-economic activities are those where the purpose is non-economic, like cooking food for the family or taking care of someone for love or religious activities.

Detailed information about these activities is mentioned below

Economic activities: These are the activities where the main purpose is to make money and these activities can be measured in term of money. For example, teacher teaching in class, carpenter making wooden goods, farmer doing farming to sale crop, someone working in factory or bank etc.

Economic activities are divided into four categories, i.e. Production, Consumption, distribution and exchange.

1. Production: It is a process of conversion of raw material to the final product, using a different factor of production by producer, the final product is sold to consumer and revenue is generated, which is shared among factor of production, i.e. land, labour, capital, entrepreneur and management. Production activity generates revenue for multiple stakeholders.

2. Consumption: consumer purchase goods and services and for own satisfaction is called consumption, it involves monetary transaction to purchase goods and services

3. Exchange: Exchange is the process of selling and buying different goods and services in the market, it involves a monetary transaction. People are purchase goods for resale purpose and make a profit by doing an exchange.

2. Distribution: goods are produced by different factors of production, i.e. land, labour, capital, entrepreneur and management. Goods are produced by inclusive efforts of all and profit is divided among these factors.