Question

What is the key factor that distinguishes economic activities from non-economic activities?

Options

• The time spent on the activity.

• Whether monetary exchange is involved.

• The location where the activity takes place.

• The number of people involved.

Answer 1

Whether monetary exchange is involved.

Explanation:

The fundamental difference between economic and non-economic activities is based on monetary exchange,economic activities involve financial transactions while non-economic activities do not.