Question

It is necessary that every economy should undertake following activities A. Production
B. Consumption
C. Investment or capital formation
D. Providing government jobs to all the citizens Choose the correct answer from the options given below:

• A. A, B, C Only
• B. A, B, D Only
• C. B, C, D Only
• D. A, C, D Only

Hint:

Production, consumption, and investment are the basic activities of every economy.

Answer 1

The Correct Option is A

Concept:
Every economy performs certain essential economic activities to satisfy human wants and ensure economic development.

Step 1:
Production refers to the creation of goods and services required for human needs. \[ A \text{ is correct} \]

Step 2:
Consumption means the use of goods and services by individuals and society. \[ B \text{ is correct} \]

Step 3:
Investment helps in creating capital goods such as machinery, factories, and infrastructure for future production. \[ C \text{ is correct} \]

Step 4:
Providing government jobs to all citizens is not a compulsory activity of every economy because employment can also be generated by the private sector. \[ D \text{ is incorrect} \]

Step 5:
Thus, the necessary economic activities are: \[ A,\ B,\ C \text{ Only} \] \[ \boxed{\text{(1) A, B, C Only}} \]