how does non market activities add value to the national income ?
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Please find below the solution to the asked query.
Economic activities are those activities which result in the production of goods and services. The economic activities are further divided into market and non-market activities. Market activities provide an income to those who are involved in it. These are production of goods and services including government services. Non-market activities result in production for self consumption. Thus, economic activities that result in production of goods and services will contribute to the generation of national income.
Non economic activities are performed for self consumption or satisfaction.Such activities do not add any value to the nation.For example,cooking food for family or working in a charitable organisation, subsistence farming etc.'
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Please find below the solution to the asked query.
Economic activities are those activities which result in the production of goods and services. The economic activities are further divided into market and non-market activities. Market activities provide an income to those who are involved in it. These are production of goods and services including government services. Non-market activities result in production for self consumption. Thus, economic activities that result in production of goods and services will contribute to the generation of national income.
Non economic activities are performed for self consumption or satisfaction.Such activities do not add any value to the nation.For example,cooking food for family or working in a charitable organisation, subsistence farming etc.'
Hope this information will clear your doubts about this topic
If you have any more doubts just ask here on the forum and our experts will try to help you out as soon as possible
Regards