Question

Mr. Ali runs a café during weekdays and offers free meals to homeless people on Sundays. Which statement correctly classifies his activities?

Options

• Both activities are economic activities.

• Running the café is economic; offering free meals is non-economic.

• Both activities are non-economic activities.

• Running the café is non-economic; offering free meals is economic.

Answer 1

Running the café is economic; offering free meals is non-economic.

Explanation:

Running the café involves monetary exchange and profit motive (economic activity), while offering free meals is done for social satisfaction without expecting money (non-economic activity).