GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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what is a subsistence economy?
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an economy directed to basic subsistence rather then to the market
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type of economic system where investment, production and the allocation of capital goods take place
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an economic system in which private individuals or businesses own capital goods
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None of the above
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Explanation:
Detailed explanation-1: -A subsistence economy is an economy directed to basic subsistence (the provision of food, clothing, shelter) rather than to the market. Henceforth, “subsistence” is understood as supporting oneself at a minimum level.
Detailed explanation-2: -Primitive economic organisation were of the subsistence type. That is they fall into. the broad category of production – consumption economics.
Detailed explanation-3: -Activities like hunting, fishing, gathering, food cultivation and handmade homes are the primary drivers behind survival. In this type of economy, the goal is to maintain existence rather than create a surplus for investment and growth. Historically, all humans lived in subsistence economies.
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