Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Ram buys 2kg of wheat, rice, barley, chia seeds and made a multigrain bread out of it with the help of machinery. According to you, which of the following economic activity took place when he converted grains into flour and then eventually bread?

Options:

Production

Distribution

Disposition

Generation

Correct Answer:

Production

Explanation:

The correct answer is Option 1: Production

Ram's activity of converting grains into flour and then bread falls under the category of production. Production involves transforming resources (in this case, grains) into a new and useful product (bread).