GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumption.
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production.
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exchange.
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distribution.
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Detailed explanation-1: -The ultimate goal of all economic activity is consumption. What is production? Production is producing goods and services for consumption. Produces are individuals who make goods and services.
Detailed explanation-2: -consumption, in economics, the use of goods and services by households. Consumption is distinct from consumption expenditure, which is the purchase of goods and services for use by households.
Detailed explanation-3: -Consumption is the end point of production process. The quality and quantity of consumption has impact on the standard of living of people in a society. If the society produces more than it consumes, it can keep the residual portion for investment so that economy continues to grow.