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Read the following… (Class 12 Economics SQP 2025-26, Q7)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2025-26: question 7

From the official CBSE sample question paper for 2025-26, section A, question 7, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q7 · 1 mark · MCQNational Income Accounting

Read the following statements carefully:
Statement 1: Final Goods do not undergo any further transformation at the hands of any producer.
Statement 2: Final goods may get transformed during their consumption by the ultimate purchaser.
In light of the given statements, choose the correct option from the following:

  1. (A)Statement 1 is true and Statement 2 is false.
  2. (B)Statement 1 is false and Statement 2 is true.
  3. (C)Both Statements 1 and 2 are true.
  4. (D)Both Statements 1 and 2 are false.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Who transforms the good: a producer or the final consumer?

Hint 2

Is cooking at home a production activity counted in GDP?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Statement 1 is true: a final good is one that will not pass through any further stage of production or transformation at the hands of a producer.

  2. Statement 2 is true: a final good may still change form while the ultimate buyer consumes it (for example, tea leaves brewed at home), but that is consumption, not production. Option (C).

    1 mark

Answer: (C) Both Statements 1 and 2 are true.

Where the marks are

  • Final goods: no further transformation by a producer (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.