What is meant by “market activities”?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Activities performed for pay or profit
Market activities are those done for remuneration: anyone who produces goods or services for the market, or works for a wage or salary, earns pay or profit. Production for one's own use, such as growing food for the family, is a non-market activity.
Why the other options are incorrect
Option (1) Activities performed for self-consumption — Incorrect. These are non-market activities.
Option (2) Activities performed as charity work — Incorrect. Charity work is done without pay, so it is not a market activity.
Option (4) Activities performed only to produce goods — Incorrect. Producing goods for one's own use is not a market activity, and market activities also include services.