Economics Practice Quiz 24

Q1.In the context of economic production, what are 'final goods'?

A. Goods that are exported to other countries. B. Goods that are used up in producing other goods. C. Goods that reach the consumers directly. D. Goods that are produced by government entities.

Q2.In the example of biscuit production provided, which of the following is considered an intermediate good?

A. Biscuits sold to consumers. B. The flour sold by the mill to the biscuit company. C. The packaging material for biscuits. D. The machinery used to make biscuits.

Q3.Why is it incorrect to count the value of intermediate goods separately when calculating total production?

A. Intermediate goods are not valuable enough to be counted. B. It leads to counting the value of the same things multiple times. C. Intermediate goods are only produced by the primary sector. D. Only services are considered for total production.

Q4.What does the value of final goods already include?

A. Only the profit margin of the final seller. B. The value of all the intermediate goods used in making them. C. The taxes imposed by the government on production. D. The cost of advertising and marketing.

Q5.Which of the following best describes 'intermediate goods'?

A. Goods that are directly consumed by households. B. Goods that are used up in producing final goods and services. C. Goods that are imported from foreign countries. D. Goods that are stored for future consumption.

Q6.The production activities in an economy are broadly categorized into how many sectors?

A. Two sectors. B. Three sectors. C. Four sectors. D. Five sectors.

Q7.In an economy, what is a possible characteristic of sectors in terms of total production and employment?

A. All sectors always have equal production and employment. B. Only the primary sector is dominant in all economies. C. One or more sectors can be dominant, while others are relatively small. D. Employment is always highest in the tertiary sector.

Q8.If 10,000 kgs of wheat is sold at Rs 20 per kg, what would be its calculated value according to the method suggested by economists?

A. Rs 20,000 B. Rs 2,00,000 C. Rs 2,000 D. Rs 200

Q9.What is the purpose of calculating the value of goods and services in the primary, secondary, and tertiary sectors?

A. To determine the average price of all goods. B. To identify the most profitable sector. C. To add them up to know the total production. D. To compare the number of people working in each sector.

Q10.Which of the following items, in the context of the biscuit production example, would be considered a final good?

A. Wheat sold by the farmer. B. Flour sold to the biscuit company. C. Sugar used by the biscuit company. D. Biscuits sold to consumers.

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Economics Practice Quiz 24