How judge economic or non-economic activity
Wednesday, November 28th, 2007To decide whether a particular activity is an economic or a non-economic activity the following points should be considered:
The purpose of the activity is the most important ground for deciding whether an activity is economic or non-economic. The same activity may be economic for one purpose and non-economic for another purpose. The chief purpose of an economic activity is to generate income. For example when a lady cooks food for monetary gain it is an economic activity. But if the amen lady cooks food for hers family it is a non economic activity.
when the work done is measurable in terms of money it is an economic activity. For example services of a maid servant can be measured in terms of money and is therefore and economic activity. On the other had services of a housewife cannot no measured in terms of money and is therefore a no economic activity.
In the normal course of life a person desires to earn money in order to satisfy his wants. He seeks to obtain maximum return from his efforts. But work done for emotional reasons is non-economic activity. For example a businessman wants to produce goods at the lowest possible cost to make maximum profit. On the other hand a person engaged in religious or social service is willing to spend bother his money and time.
Both economic and non-economic activities must be legal. Activities which are illegal though resulting in economic gain for example smuggling black-marketing robbery and others cannot bane called economic activities. Only those human activities can be called economic activities which are performed in accordance with the laws of the land. Even non-economic activities whether social or religious must conform to law.