Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following is a process of adding value to the intermediate good?

Options:

Production

Consumption

Investment

Generation

Correct Answer:

Production

Explanation:

Production is generally defined as an activity which produces physical goods and services or increase the value of intermediate consumption by converting the inputs into outputs. In other words, we can say it adds some value to the intermediate good.

Example: Buying fruits for Rs. 20/kg and selling fruit chart at Rs 25/kg ( Value addition has taken place)