Which of the following is an example of market 'production,' as used by economists?
A)Garvey takes out a low-cost government loan to start his pet-sitting business.
B)Heidi makes a pizza for her family's dinner.
C)Katrina works as a cashier at the local produce stand.
D)The theatre and film studies department in Fine Arts University stages a play at the local theatre.

Question

Quizplus · Accepted Answer

The theatre and film studies department staging a play is an example of market production because it involves the production of a good (the play) that is sold in the market (the local theatre). Garvey taking out a low-cost government loan to start his pet-sitting business is not an example of production, but rather financing. Heidi making a pizza for her family's dinner is not an example of market production because it is not sold in the market. Katrina working as a cashier at the local produce stand is an example of labor, but not production as she is not directly involved in creating a good or service for sale.

Which of the Following Is an Example of Market 'Production