the process under which intermediate goods (raw material) change into final goods (ready material) is called A. Exchange B. Consumption C. production D. investment
Answers
The process under which intermediate goods (raw material) change into final goods (ready material) is called Production
Extra Information:
Exchange =>
Exchange is the process in which people exchanges resources from each other. Example => There are two persons and one is having wheat in bulk but, less on rice and other person having rice in bulk and less on wheat so, they can exchange wheat and rice according to their needs.
Exchange is not just of resources but, exchange is also done commodities, derivatives and other financial instruments etc. which are exchanged.
Consumption =>
Consumption is the process of using goods which are produced and services which are available to us. Example => Purchase of books, shoes, flowers and the services like getting house cleaned, restaurants providing food services etc.
Production =>
Production is the process in which various raw material inputs are taken which helps us in making something for consumption. Production can be of goods and services which can be utilized by people by providing value to those goods and services.
Investment =>
Investment is the process in which we buy goods which are not used for consumption as of today but, will help us in future to create wealth from it. Investment is also done in assets which you might help in future at higher profits.
Explanation:
Among the four options given in question statement, the correct option is Production, which is option A.
Production is the process by which the raw material are processed through some sequence and then these are converted to semi finished good or to final goods which can be directly used by consumers. Manufacturing or production process belong to primary industrial sector