Question

Production = Creation of Utility. This statement is ________________.

• A. True
• B. False
• C. Partially True
• D. None of the above

Answer 1

The correct option is A True

Production is an economic activity. Production is a process where the goods and services are created or manufactured.

Utility refers to the usefulness of a good or service. For example, when a manufacturer converts the yarn into a cloth, he adds utility to yarn, so that we can wear it.

Thus, production creates as well as adds utility.

The correct answer is A.