Practicing Success
Which of the following statement is true? Statement 1 : Household spends their income on the goods and services produced by the producing sector . |
Both the statements are true Both the statements are false Statement 1 is true and statement 2 is false Statement 2 is true and statement 1 is false |
Both the statements are true |
The correct answer is option 1: Both the statements are true Statement 1 : Household spends their income on the goods and services produced by the producing sector. This is correct. Households typically spend their income on goods and services produced by the producing sector (firms), which include consumer goods and services. |