Which of the following is not an economic activity?

Question

UnlockIAS · Accepted Answer

Correct — D, Voluntary Social Service. An economic activity is one undertaken to earn income or a livelihood — it produces or supplies goods and services for monetary gain. Voluntary social service is done out of love, charity or social duty, with no expectation of monetary reward, so it is a non-economic activity.

Why the other options are wrong — (a) Transport is a service performed for payment (carrying goods or people for a fare) — an income-earning, hence economic, activity.  (b) Farming produces crops and food for sale or livelihood — a primary-sector production activity, clearly economic.  (c) Rendering a service for remuneration (teaching, banking, transport, etc.) is by definition an economic activity.

Concept: Human activities are classed as economic or non-economic. Economic activities are performed to earn money/income and involve the production, distribution or consumption of goods and services — for example farming, transport, trade and professional services. Non-economic activities are done for reasons other than money — love, charity, religion or social service — and yield no income, e.g., unpaid voluntary social work.

State PCS 2023 Q15 — Economy PYQ with Answer

State PCS 2023 Q15 — Economy PYQ with Answer