Those activities which contributes to GNP are calleda)Economic activit...
Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an economic activity. Additionally, any activities involving money or the exchange of products or services are economic activities.
Those activities which contributes to GNP are calleda)Economic activit...
Economic activities:
Economic activities refer to the production, distribution, and consumption of goods and services in an economy. These activities are undertaken by individuals, businesses, and the government to generate income and contribute to the overall economic growth of a country. Economic activities play a crucial role in determining the Gross National Product (GNP) of a nation.
Definition of GNP:
GNP is the total value of all goods and services produced by the residents of a country within a specific time period, usually a year. It includes both the domestically produced goods and services as well as the income earned by the residents from abroad. GNP is an important measure of a country's economic performance and is used to compare the economic strengths of different nations.
Contribution to GNP:
Activities that contribute to GNP are those that involve the production of goods and services, as these directly contribute to the overall economic output of a country. These activities are considered economic activities and are included in the calculation of GNP. Some examples of economic activities include:
1. Manufacturing: The production of goods through various manufacturing processes, such as textiles, automobiles, electronics, etc., contributes significantly to GNP.
2. Agriculture: The cultivation of crops, rearing of livestock, forestry, and fishing are all economic activities that contribute to GNP.
3. Services: The provision of services, such as healthcare, education, transportation, banking, tourism, etc., also contributes to GNP. These services generate revenue and create employment opportunities.
4. Construction: The construction industry, including the building of infrastructure, residential and commercial properties, contributes to GNP by creating employment and generating economic activity.
5. Mining and extraction: The extraction of natural resources, such as minerals, oil, and gas, contributes to GNP through both domestic consumption and exports.
6. Trade: Domestic and international trade activities, including import and export of goods and services, also contribute to GNP.
Conclusion:
In summary, economic activities are those activities that directly contribute to the production, distribution, and consumption of goods and services in an economy. These activities play a vital role in determining the GNP of a country. Non-economic activities, on the other hand, do not directly contribute to the economic output and are not considered in the calculation of GNP.