10 Questions
Which of the following is not classified as an input for economic activities?
Consumer goods
What is the basic objective of all economic activities?
To transform inputs into outputs
What is the purpose of Non-Profit Organizations (NPOs)?
To aim at social benefits
What decisions does a production unit have to make?
What do economists classify as inputs for economic activities?
Land, labour, capital, and entrepreneurship
What represents the essence of economic activity according to the text?
Transforming a set of inputs into a set of output
What are some examples of types of businesses mentioned in the text?
Agriculture, poultry-farming, food processing, banking
What type of goods are referred to as non-durable or single use goods in the text?
Consumer goods
'For whom to produce' is a decision related to which economic activity?
'Production'
'Creation of net value added' is the basic objective of which type of activity?
'Production'
Study Notes
Economic Activities
- The basic objective of all economic activities is to create net value added.
- Creation of net value added is the basic objective of for-profit organizations.
Inputs for Economic Activities
- Economists classify labor, capital, and natural resources as inputs for economic activities.
- Labor, capital, and natural resources are categorized as inputs for economic activities.
Non-Profit Organizations (NPOs)
- The purpose of Non-Profit Organizations (NPOs) is to serve society rather than to make a profit.
Production Unit Decisions
- A production unit has to make decisions on what to produce, how to produce, for whom to produce, and how to price.
Types of Businesses
- Examples of types of businesses mentioned in the text include for-profit organizations and Non-Profit Organizations (NPOs).
Types of Goods
- Non-durable or single-use goods are referred to as goods that are used only once.
Economic Activity
- The essence of economic activity is the creation of net value added.
Decision Making
- 'For whom to produce' is a decision related to distribution.
Test your knowledge about the various types of businesses and their role in economic activity. Explore how different businesses transform inputs into outputs to create net value added.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
