Archives Answers

Ans: (i) – a. (ii) – b. Consumption Goods – Durable Goods Capital Goods – Producer Goods  

Ans: (i) – a (i) Intermediate Product – (a) Paper purchased by a publisher

Ans – (d) (d) Depreciation – (iv) Consumption of Fixed Capital

Ans – (b) Capital Goods – (ii) Goods which help in production of other goods.

False, The value of fixed assets decreases or depreciates with the passage or efflux of time, even if they are not being put to use in the business.

False, Intermediate goods are generally non-durable in nature. They are the goods used as raw material and they lose their identity in the production process for the creation of a new commodity, during an accounting year.

False, Only expected obsolescence is a component of depreciation. Explanation:- Depreciation refers to a fall in the value of fixed assets due to normal wear and tear, passage of time or expected obsolescence. Expected Obsolescence occurs due to change in…

False, It is a final good as it is purchased for investment purposes.

True, It will be included in National Income as it is a part of Factor Income from abroad.

False, Because all such purchases are not necessarily used up for further production or resold during the year. For example, products like machines, vehicles, etc. are final products even though they are purchased by a production unit from other production…