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However, even if all human activities satisfy the needs and wants, they differ
among each
other in terms of the purpose for which they are undertaken and the end
result. For example,
let us take the activity of preparing food one prepared by a mother at home
for her
family and the other by a cook in a hotel. Here you will notice that the
purpose and end
result of the activity of preparing food (a) by a mother and (b) by a cook
varies. In the first
case, the purpose is to feed the family members without any expectation of
monetary
return while in the second case, cooking food is a part of his job so as to earn
money in
terms of salary or wage. The end result in the first case is self-satisfaction
and looking
after the family, while in the second case it is earning money for livelihood.
The human activities that are undertaken with an objective to earn money or
livelihood are
called economic activities. Whereas the other types of activities that are
undertaken to
derive self-satisfaction, are called non-economic activities. A farmer
growing crops, a
worker working in a factory for wage/salary, a businessman engaged in
buying and selling