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In Economics, which of the following activities counts as production?
AA maid servant cleaning a house for wages
BA homemaker cooking a meal for her family
CA volunteer teaching children without any charge
DA farmer growing vegetables only for self-consumption
Answer & Solution
Correct answer: A. A maid servant cleaning a house for wages
1. Production in Economics is any activity that converts inputs into outputs meant for exchange in the market.
2. Intention to exchange (earning income) is essential; work done out of love, voluntary service, and goods for self-consumption are excluded.
3. The maid servant works for wages, so her service is production.
4. The homemaker, the volunteer, and the self-consuming farmer all act outside the market, so none of those qualify.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.5_
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