Conservative forces, like gravity, allow energy to be converted between potential and kinetic forms without loss, as demonstrated by a ball dropped from a height. In contrast, non-conservative forces, such as friction, dissipate energy, resulting in less energy available for motion after each bounce. The discussion highlights that the earth-moon system is conservative because the net work done is zero when returning to the same point, maintaining energy levels. Non-conservative forces, exemplified by friction in a spring-mass system, lead to energy loss over time. Overall, the distinction between conservative and non-conservative forces is crucial for understanding energy conservation in different physical systems.