

InterviewSolution
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Define production.................... |
Answer» Answer: Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make SOMETHING for consumption (OUTPUT). It is the act of CREATING an output, a good or service which has value and contributes to the utility of individuals.[1] The area of economics that focuses on production is referred to as production theory, which in many respects is similar to the consumption (or consumer) theory in economics.[2] Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human wants and needs. The DEGREE to which the needs are satisfied is often accepted as a measure of economic well-being. In production there are two features which explain increasing economic well-being. They are improving quality-price-ratio of goods and services and increasing incomes from growing and more efficient market production or TOTAL production which help in increasing GDP. The most important forms of production are: market production public production household production Explanation: |
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