Practicing Success
Meetali produces 100kg of rice. She consumes 10kg of it and the rest is kept for the purpose of sale in the market. According to you, the production activity by Mitali will be considered as which of the following options? |
Non-market activity Market activity Philanthropic activity None of the above |
Market activity |
The activities that result in the production of goods and services and add to the value of national income are called as "economic activities". They have been further divided into 2 categories i.e. market and non-market activities. Market activities involve remuneration to anyone who performs i.e., activity performed for pay or profit. Non-market activities are the production for self-consumption. As, Mitali consumes a part of the produce and the rest is kept for the purpose of sale. Thus, it will be considered as a "Market activity". |