Correct Option
The correct option is Contributing to national income by engaging in economic activities.
Explanation
In economics, human activities are broadly classified into economic and non-economic activities. Economic are those undertaken to earn a monetary reward or financial gain. "Earning a living" specifically refers to engaging in these activities to generate factor income (such as wages, salaries, or profits), which corresponds to the value added to the economy.
Option Analysis
- Inheriting money from ancestors. is Incorrect: Inheriting money is a transfer of wealth (transfer payment). It does not involve the production of new goods or services and does not contribute to the current flow of goods and services in the economy (National Income).
- Contributing to national income by engaging in economic activities. is Correct: Earning a living implies active participation in the production boundary of the economy (providing labor or entrepreneurship). This engagement generates income and directly contributes to the National Income (Net National Product at Factor Cost).
- Working only for self-satisfaction. is Incorrect: Activities performed solely for self-satisfaction, love, or social obligation (non-economic activities) do not involve monetary exchange. While they may have utility, they do not constitute "earning a living" in the formal economic sense.
- Accumulating wealth for future generations. is Incorrect: Accumulating wealth is a result of saving income or capital appreciation. It is a stock concept related to asset holding, whereas "earning" is a flow concept related to income generation.
Key Takeaway: In an economic sense, "earning a living" is defined by the performance of economic activities that generate factor income and contribute to the country's National Income.