Which one of the following is an intermediate expenditure?
Which one of the following is an intermediate expenditure?
(a) Expenditure on maintenance by a firm
(b) Purchase of furniture by a firm
(c) Purchase of tractor by a farmer
(d) Refrigerator bought by a household
Anurag Pathak Changed status to publish December 14, 2023
Ans – (a)
Explanation:-
Expenditure on maintenance by a firm is the intermediate expenditure. Its cost is added to the final goods and services produced by the firm.
(b)
The purchase of furniture by a firm is the final good as it is purchased for investment purposes and is not meant for resale and to be consumed in the production of the final product within a year.
(c)
The purchase of a tractor by a firm is the final good as it is purchased for investment purposes and is not meant for resale and to be consumed in the production of the final product within a year.
(d)
The Refrigerator bought by a household is the final good as it is purchased for consumption purposes and not for resale.
Anurag Pathak Changed status to publish December 14, 2023
