what are the 2 main functions of the economy
Answers
Answer:
Thus all economies whether they are capitalist, socialist or mixed perform these important functions of consumption, production and growth.
Answer:
The first vital process of an economy is production which must go on continuously. “Production includes any activity, and the provision of any service, which satisfies and is expected to satisfy a want.” In this wider sense, production includes products produced on farms like wheat, vegetables, pulses, etc. and those manufactured in the factories such as clothes, bicycles, television sets, electric appliances, and the like. It also includes the services of shopkeepers, traders, transporters, actors, doctors, civil servants, teachers, engineers and the like who help in satisfying the wants of the people in the economy through their services.
But the term ‘production’ excludes certain goods and services though they satisfy human wants. First, domestic work done within the family by the housewife, husband or children. Second, production of hobby articles, like paintings.