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Production in Economics is best described as the creation of:
Autility in the form of goods and services
Bmatter from natural raw materials
Cmoney through buying and selling
Dwealth without using any inputs
Answer & Solution
Correct answer: A. utility in the form of goods and services
1. Man cannot create matter; he can only add utility to things that already exist in nature.
2. Production therefore means creation or addition of utility, taking the form of goods and services.
3. So the correct description is the creation of utility.
4. Creating matter is impossible by the fundamental law of science, ruling out that option.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.2_
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