CBSE Class 12 Economics 2026: question 7
Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, 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 are those goods which normally lose their identity in the production process.
Statement 2 : Final goods may get transformed during the consumption process by a consumer.
(Choose the correct option)
- (A)Statement 1 is true and statement 2 is false.
- (B)Statement 1 is false and statement 2 is true.
- (C)Both statements 1 and 2 are true.
- (D)Both statements 1 and 2 are false.
Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.
Hints
Open one hint at a time and try again before the next.
Hint 1
Which kind of good is used up as an input in production?
Hint 2
Is cooking at home a production activity for the market?
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.
Statement 1 is false: goods that lose their identity in production are intermediate goods (e.g. flour used by a baker). Final goods are bought for final use and do not pass through further production.
- 1 mark
Statement 2 is true: a final good can still be transformed while the consumer uses it (e.g. a household cooks raw vegetables), because that change is consumption, not production for sale. Option (B).
Answer: (B) Statement 1 is false and statement 2 is true.
Where the marks are
- Final goods do not lose identity in production; they may change during consumption (1 mark)
Revise the chapter
- Chapter: National Income Accounting (notes, formulas, where marks are lost and every past question)
- Topic: Final and Intermediate Goods
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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.