Production, consumption and distribution are economic activities. Explain

Dear student,

The activities which are under taken with aim of earning money are known as economic activities.
Production is a process to convert inputs/raw material into final goods or services.
Consumption is utilisation of goods and services by the individuals with the aim of satisfying their needs and wants.
Distribution means allocating or distributing the final goods and services among the different segments of population. 
All these activities are taken with aim of earning money therefore, these are economic activities.

Regards

 

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