Difference between Market Activity and Non-Market Activity
Market activity and non-market activity are two different types of economic activity that take place in an economy.
The main difference is market activity is economic activity that takes place through market transactions, while non-market activity is economic activity that does not take place through market transactions.
Before we move to the differences, let’s understand what are Market Activity and Non-Market Activity:
- Market Activity: Market activity is economic activity that involves buying and selling goods and services through markets.
- Non-Market Activity: Non-market activity is economic activity that does not involve buying and selling goods and services through markets.
Now, let’s move to Market Activity vs Non-Market Activity:
Major differences between Market Activity and Non-Market Activity
| Market Activity | Non-Market Activity |
|---|---|
| Market activity is voluntary. | Non-market activity is often involuntary. |
| Market activity is guided by prices | Non-market activity is not guided by prices. |
| Market activity is measured by Gross Domestic Product (GDP). | Non-Market activity is not measured by Gross Domestic Product (GDP), |
| Market activity is more efficient in allocating resources than non-market activity. | Non-market activity may be less efficient in allocating resources than market activity. |
| Market activity is usually associated with capitalist economies. | Non-market activity is usually associated with socialist or communist economies. |
That’s it.
Note that sometimes, the question might also be asked as “distinguish between Market Activity and Non-Market Activity”.
Also see:
- Difference between Share Certificate and Share Warrant
- Difference between Sol and Gel
- Difference between Group Behavior and Individual Behaviour
Final words
Market activity and non-market activity are two different types of economic activity that take place in an economy.
Both types of activity are important in an economy, but they are different in terms of their characteristics and how they are measured. Understanding the difference between market activity and non-market activity can help us understand the functioning of an economy.
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