Which of the following best describes the term "Production" in economics? |
Process of converting inputs into outputs Which increases the value of intermediate consumption Activity which results in value addition All of the above |
All of the above |
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. Example: Buying rice for Rs. 200/kg and selling rice flour at Rs 250/kg ( Value addition has taken place) |