State whether each of the following is an economic activity or not. Give reasons for your answer.
Health worker treating her patient.
Economic activity: The health worker is treating patients to earn her livelihood, similar to a doctor operating in his clinic. Since it is undertaken with the objective of earning money and not out of emotion, it is an economic activity.
Store owner sympathies with a needy elderly person and gives medicines for his ailment.
Non-economic activity: The store owner gives medicines out of sympathy for the needy elderly person. Activities performed out of love, sympathy, or sentiment are non-economic activities as they lack the profit motive.
Football coach giving training in football to his daughter for forthcoming match.
Non-economic activity: The football coach trains his daughter out of love and affection. Since the activity is performed for family and not for earning livelihood, it is a non-economic activity.
Services of a housewife doing household chores at home.
Non-economic activity: A housewife doing household chores performs them out of love and affection for her family. Such activities done without any monetary consideration are non-economic activities.
Donation made by a business house towards community kitchen run by an NGO for providing food, medicines to underprivileged people and migrant workers of the society during Covid 19 pandemic.
Non-economic activity: The donation is made out of sympathy and social responsibility towards underprivileged people. Since it is not undertaken for earning profit or livelihood, it is a non-economic activity.
Explanation
The context clearly distinguishes between economic and non-economic activities. Economic activities are undertaken to earn livelihood (like a doctor in clinic, teacher in school). Non-economic activities are performed out of love, sympathy, sentiment, or patriotism (like a housewife cooking for family, helping an old man cross the road). Business is defined as an economic activity with a profit motive. Using these principles, activities done for earning money are economic, while those done out of emotions like sympathy or love are non-economic.