Question

why does operating surplus not arise in subsistence​

Answer 1

Answer:

hope it helps you

Explanation:

Operating surplus does not arise in the subsistence sector and in the general government sector because of the following reasons: (i) in the subsistence sector, production is meant only for subsistence of the producing families. Production is not meant for sale in the market. There is no marketable surplus.

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Answer 2

Answer:

the reason that government operating surplus is zero or nil is that the main motive of government is maximksation of social welfare rather than profit . the subsistence sector relies on natural resource to provide basic needs