Question

Which of the following is an economic activity ?

• A. Consumption
• B. Production
• C. Exchange
• D. All of these

Hint:

In economics, remember the three core activities: Production (creating), Exchange/Distribution (moving), and Consumption (using). If a question asks to identify an economic activity, look for options that fall into one of these categories.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
An economic activity is any action that involves producing, distributing, or consuming goods or services. The primary purpose of economic activities is to satisfy human wants and needs, and they typically involve the exchange of money.
Step 2: Detailed Explanation:
Let's analyze the given options:
(a) Consumption: This is the act of using goods and services to satisfy wants. It is the final stage of economic activity.
(b) Production: This is the process of creating goods or providing services. It's the starting point of most economic cycles.
(c) Exchange: This refers to the process of trading goods or services, usually for money. It connects production and consumption.
All three—production, exchange, and consumption—are fundamental components of the economic process. Therefore, they are all considered economic activities.
Step 3: Final Answer:
Since Consumption, Production, and Exchange are all core economic activities, the correct option is (D) All of these.