1.

Explain the mandatory processes of the economic system.

Answer»

Following are the mandatory processes of the economic system: 

  • Production : The production of goods and services depends upon requirement, capability, techniques of production and amount of resources available. 
  • Consumption : The requirements of a group of people are fulfilled by the use of goods and services. 
  • Investment : Investment refers to the net increase in amount of capital (stock) in the present year as compared to the previous year.


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