UPPCS Prelims 2023 · GS Paper I: Which of the following is not an economic activity?
Which of the following is not an economic activity?
Answer (c) & explanation
Option (c), voluntary social service, is correct, because it is not an economic activity. Economic activities produce goods or services for income, profit or exchange, and they add to national income. Voluntary social service is done out of goodwill without payment, so it is a non-economic activity, like a parent cooking at home. Option (a), farming, is a primary economic activity. Option (b), services, such as teaching or banking, are tertiary activities. Option (d), transportation, is also a tertiary economic activity. Concept: GDP leaves out unpaid household and voluntary work. India's Time Use Survey (2019 and 2024) shows women spend far more time on unpaid care work than men.
Service is economic when it is paid; voluntary social service is non-economic.
Question as printed in UPPSC's official question booklet. Source: uppsc.up.nic.in
Same theme in UPPCS Mains
- MAINS UPPCS Mains 2025 · GS Paper III · Section A · Q6How can inclusive and sustainable industrialization (SDG 9) drive economic growth (SDG 8), while ensuring environmental sustainability (SDG 12, 13) in India ?
- MAINS UPPCS Mains 2025 · GS Paper III · Section B · Q13Analyze the impact of global economic tensions and import-export obstacles on the Indian economy.
- MAINS UPPCS Mains 2025 · GS Paper III · Section B · Q14“Investment in health and education forms the foundation of economic development.” Explain the views of the Government of India in this context.
Same theme in UPSC Mains
- MAINS UPSC Mains 2026 · GS Paper I · Q5“Tundra regions are ecologically fragile but economically important.” Examine this statement critically.
- MAINS UPSC Mains 2026 · GS Paper II · Q19“India's global diaspora acts as a living bridge, as a critical economic factor and knowledge network in transforming cultural heritage into geopolitical influence and strategic leverage…
- MAINS UPSC Mains 2025 · GS Paper IV · Q6bIndia is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF…
Related questions from other years
Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?
Answer (c) & explanation
The sub-indices are Access, Usage and Quality (c). The RBI launched the FI-Index in August 2021. It covers banking, investments, insurance, postal services and pension, and gives one value between 0 and 100. Its three parameters are Access (35%), Usage (45%) and Quality (20%). Options (a), (b) and (d) list areas or ideas that are not its sub-indices; GDP contribution and affordability are not parameters.
Notice the logic: usage has the most weight, because an account that is never used does not mean real inclusion. Quality includes financial literacy and consumer protection. The index is published every July, and it has risen steadily, helped by Jan Dhan (2014) and UPI.
Answer as per the official UPSC answer key.
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Answer (c) & explanation
ONDC aims to break the dominance of large platforms (c). The Open Network for Digital Commerce, a DPIIT initiative (2021-22), is an open set of rules, like UPI for shopping. A buyer on one app can buy from a seller listed on another app. This interoperability lets small sellers reach buyers without joining a giant platform. Option (a) is wrong: it does not give the government control of transactions. Option (b) is wrong: private players can join; they are not replaced. Option (d) is wrong: it does not force UPI payments.
Notice ONDC's design: it is a not-for-profit company and part of India's Digital Public Infrastructure, along with Aadhaar, UPI and DigiLocker. It now covers food, groceries and mobility too.
options (a), (b) and (d) use strong words: "all", "replace", "mandate". A public digital platform usually opens a market; it does not take it over.
Answer as per the official UPSC answer key.
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?
Answer (d) & explanation
Statement (d) is not correct (d). Under UPI, money moves between bank accounts; the deposit is a liability of the bank. The Digital Rupee (e₹) is like a currency note in digital form, a direct liability of the RBI, not of users or banks. Option (a) is correct: UPI is a payment system, while the e-rupee is sovereign currency. Option (b) is correct: an e-rupee transfer moves value from wallet to wallet with no separate settlement. Option (c) is correct: e-rupee wallet transactions do not appear in bank statements.
Notice the legal base: the RBI Act was amended in 2022 to let the RBI issue a CBDC. Pilots began that year in wholesale (e₹-W) and retail (e₹-R) forms.
a "not correct" question. Look for the statement that puts the RBI's liability on someone else.
Answer as per the official UPSC answer key.
Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?
- 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- 2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
- 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below :
Answer (a) & explanation
All three statements are correct (a). Statement 1 is right: tokenization turns a real asset, like a building, bond or gold, into digital tokens recorded on a blockchain. Statement 2 is right: tokens can be traded 24x7, which widens financial inclusion. Statement 3 is right: small, fractional tokens let ordinary individuals get into high-growth investments that once needed crores. So options (b), (c) and (d) fail.
Notice the risks: unclear regulation, cyber threats and weak investor protection. In India, related steps include Fractional Ownership Platforms and REITs and InvITs, which already let small investors own slices of real estate and infrastructure. The RBI is also testing tokenized deposits and government securities in sandbox pilots.
Answer as per the official UPSC answer key.