Multiple choice

Demand for the final consumption arises

  1. in household sector only

  2. in government sector only

  3. in both household and government sectors

  4. neither in household sector nor in government sector
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Final consumption demand arises in both household and government sectors. Households demand goods and services for personal consumption, while the government demands goods and services for public consumption and administration. This is a fundamental concept in national income accounting. Options A and B are incomplete as they consider only one sector, while D is incorrect as both sectors contribute to final consumption demand.

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