A government agency pays a private weather company for a forecast that its staff use to issue flood warnings to households.
Which statement is most accurate?
Both actions are production because each supports a public service
Both actions are consumption because information is used in each case
Buying the forecast is production, while issuing the warning is consumption
Buying the forecast is consumption, while issuing the warning is production
77 exam-style questions on OCR GCSE Economics 1.1 Main economic groups and factors of production, covering 1.1.1 Role of main economic groups and 1.1.2 Factors of production. Each one has a worked solution and a mark scheme showing where the marks go.