Question

Basic goods are those produced on a large scale for _____ and local consumption.

• A. Export
• B. Import
• C. Consumer goods
• D. None of these

Answer 1

The correct option is A Export

Basic goods are the goods which itself may not have utility but other good derived from it have that utility. Cotton is a best example of basic good because apparels made from it have utility. In other words, raw materials used for further production of new items in agriculture, manufacture or construction are called basic goods. They are produced on a large scale for export and local consumption.