1.

Differentiate between production for exchange and production for self-consumption.

Answer»

The main points of differences between production for self-consumption and production for exchange are as follows:

Production for self consumptionProduction for exchange
1. Production is meant for self-use.1. Production is meant for sale in the market.
2. It does not generate any operating surplus.2. It generates operating surplus. 
3. It takes place in subsistence economies.3. It is the feature of modern economies.
4. No capital formation.  4. Enables capital formation.



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