Question

Which of the following is the example of economic activity?

• A. Production
• B. Consumption
• C. Charity
• D. A and B both

Answer 1

Answer: (D)

A and B both

The definition of an economic activity is given as "any activity where goods and services are exchanged for money." The economic activity of production involves producing goods and services so that they can be sold in the market for fair price. The economic activity of consumption involves consumers lending their services in exchange for wages that they then use to purchase goods and services.