Question

Write the functions of economy?​

Answer 1

Answer:

Economies might differ in their organization but all perform these three functions which are discussed below.

1. Production:

The first vital process of an economy is production which must go on continuously.

2. Consumption:

The second vital process of an economy is consumption. Consumption means the use of economic goods and services in the satisfaction of human wants.

3.Growth

Now we look at the processes by which economies grow like living things. Economic growth is “the process whereby the real per capita income of a country increases over a long period of time.” We enumerate the factors which lead to the growth of an economy.