Answer each of the following questions in a paragraph:

How do production and exchange play a very important role in our daily life?

Human life is defined by wants and needs which can be satisfied by goods and services. These goods and services are produced and exchanged for money. The production, distribution and consumption of goods and services involve economic activities. Agriculture and industry produce different goods and services which need to be consumed. To facilitate consumption a proper distribution channel is required. This entire process facilitates the economic development of society as a whole which in turn aids social and personal development.