Q. Consider the following statements:

1. Market activities involve remuneration to anyone who performs.
2. Consumption and processing of primary product and own account production of fixed assets are examples of non-market activities.

Which of the above is / are correct?
Answer: Both 1 and 2
Notes: Both are correct examples. Economic activities have two parts - market activities and non-market activities. Market activities involve remuneration to anyone who performs i.e. activity performed for pay or profit. These include production of goods or services, including government service. Non-market activities are the production for self-consumption. These can be consumption and processing of primary product and own account production of fixed assets.