Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

When Ram brought old newspapers and made a bowl out of it with the help of paper mache art, what do you think which basic economic activity took place?

Options:

Consumption 

Generation

Investment

Production

Correct Answer:

Production

Explanation:

Production can be defined as something which creates value or convert input into output. Here value was created as newspapers were converted into show pieces with the help of paper mache. Thus, we can say production took place in the economy.