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The basic economic activities put in order are
- a)Consumption, exchange and production
- b)Production, Exchange and consumption
- c)Production, consumption and exchange
- d)Exchange, production and consumption
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
The basic economic activities put in order area)Consumption, exchange ...
Production, consumption and capital formation are called the basic economic activities of an economy. Scarce resources are used in the production of goods and services with the objective of satisfying our needs and wants.
Most Upvoted Answer
The basic economic activities put in order area)Consumption, exchange ...
Production, Exchange and Consumption
Production:
- The process of creating goods and services using resources such as land, labor, and capital.
- Examples include manufacturing, farming, and construction.
Exchange:
- The act of giving or receiving goods, services, or money in return for something else.
- Examples include buying and selling in markets or through bartering.
Consumption:
- The act of using goods and services for personal or business purposes.
- Examples include eating food, using electricity, or driving a car.
Explanation:
- The correct order of economic activities is Production, Exchange, and Consumption, as production must occur before exchange and consumption can take place.
- This order reflects the basic process of creating goods and services, exchanging them for other goods, services, or money, and then using them for personal or business purposes.
- This sequence is essential for economic growth and development as it ensures that goods and services are available for consumption and exchange.
Production:
- The process of creating goods and services using resources such as land, labor, and capital.
- Examples include manufacturing, farming, and construction.
Exchange:
- The act of giving or receiving goods, services, or money in return for something else.
- Examples include buying and selling in markets or through bartering.
Consumption:
- The act of using goods and services for personal or business purposes.
- Examples include eating food, using electricity, or driving a car.
Explanation:
- The correct order of economic activities is Production, Exchange, and Consumption, as production must occur before exchange and consumption can take place.
- This order reflects the basic process of creating goods and services, exchanging them for other goods, services, or money, and then using them for personal or business purposes.
- This sequence is essential for economic growth and development as it ensures that goods and services are available for consumption and exchange.
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Community Answer
The basic economic activities put in order area)Consumption, exchange ...
Production, Exchange and Consumption
Production:
- Refers to the creation of goods and services by combining various resources such as land, labor, capital and entrepreneurship.
- It involves the transformation of raw materials into finished products or services that are useful to individuals or other businesses.
- Production can be categorized into primary, secondary and tertiary sectors.
Exchange:
- Refers to the process of buying and selling goods and services.
- It involves the use of money as a medium of exchange.
- In exchange, individuals or businesses trade goods and services which they have produced for goods and services which they need.
Consumption:
- Refers to the process of using goods and services to satisfy human wants and needs.
- It is the final stage of economic activity in which goods and services are used up by individuals or businesses.
- Consumption can be categorized into personal consumption and capital consumption.
Putting all the above in order, the basic economic activities are:
1. Production: The creation of goods and services by combining various resources such as land, labor, capital and entrepreneurship.
2. Exchange: The process of buying and selling goods and services using money as a medium of exchange.
3. Consumption: The process of using goods and services to satisfy human wants and needs, which is the final stage of economic activity.
Therefore, the correct answer is option 'B', which puts the basic economic activities in the following order: Production, Exchange and Consumption.
Production:
- Refers to the creation of goods and services by combining various resources such as land, labor, capital and entrepreneurship.
- It involves the transformation of raw materials into finished products or services that are useful to individuals or other businesses.
- Production can be categorized into primary, secondary and tertiary sectors.
Exchange:
- Refers to the process of buying and selling goods and services.
- It involves the use of money as a medium of exchange.
- In exchange, individuals or businesses trade goods and services which they have produced for goods and services which they need.
Consumption:
- Refers to the process of using goods and services to satisfy human wants and needs.
- It is the final stage of economic activity in which goods and services are used up by individuals or businesses.
- Consumption can be categorized into personal consumption and capital consumption.
Putting all the above in order, the basic economic activities are:
1. Production: The creation of goods and services by combining various resources such as land, labor, capital and entrepreneurship.
2. Exchange: The process of buying and selling goods and services using money as a medium of exchange.
3. Consumption: The process of using goods and services to satisfy human wants and needs, which is the final stage of economic activity.
Therefore, the correct answer is option 'B', which puts the basic economic activities in the following order: Production, Exchange and Consumption.
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