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In Economics, Production involves the creation of goods and services by:
ATrading goods between businesses
BUsing resources to create utility (transforming raw materials to finished goods)
CSaving income for future use
DSelling shares on the market
Answer & Solution
Correct answer: B. Using resources to create utility (transforming raw materials to finished goods)
1. Per OCR: "Production involves the creation of goods and services by using resources. It is a process to change the raw materials into final/finished goods. It is nothing but creation of utility."
2. Production = utility creation.
3. Consumption = utility destruction.
_Source: ICMAI BoS CMA Foundation Paper 4 (FBEM) — Paper4_07042026.pdf, Module 1 §1.1 (page 12)_