Economic Awareness - Sectors of Indian Economy
Which of the following statements about economic agents is NOT correct?
Which of the following statements about economic agents is NOT correct?
hard Q10 of 15
Step-by-Step Solution
Step 1: Understand roles of economic agents
Households supply factors of production (like labor) to firms. Firms produce goods and services, households consume them. Government regulates economic activities. Financial institutions mobilize savings and provide credit.Step 2: Analyze each statement
Households supplying factors to firms is correct. Firms consuming goods produced by households is incorrect; households are consumers, not producers of goods for firms. Government regulation is correct. Financial institutions’ role is correct.Step 3: Explain incorrect option
Firms produce goods and services; households consume them. The statement that firms consume goods produced by households reverses this relationship.Final Answer:
Firms consume goods and services produced by households → Option CQuick Check:
Firms do NOT consume goods and services produced by households ✅
Quick Trick: Remember production-consumption roles of households and firms.
Common Mistakes:
MISTAKES- Reversing roles of producers and consumers.
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