Should the following be treated as final expenditure or intermediate expenditure? Given reasons for your answer.

(a) Milk purchased by a tea stall is an intermediate good because it is purchased by a firm as a raw material for the process of production of other good. (b) Bus purchased...

Goods purchased by a production unit from other production units for resale or for using them completely during the same year are an intermediate goods, goods purchased for consumption/investment are...

(i) Machine purchased by a dealer of machines is a intermediate goods because it is meant for resale to someone. (ii) A car purchased by a household is a final...

(i) furniture purchased by school - Final Product. Reason: School buy furniture for long - term use and it is considered as an investment. (ii) Chalks, Dusters, etc., purchased by...

(i) Computers installed in an office: Final Product Reason: Office buy computers as long term durable products and are investment for them. (ii) Mobile sets Purchased by a Mobile Dealer-...

i) Expenditure on maintenance of an office building- Final Expenditure Reason- It is for consumption purpose, so it is considered as final expenditure. (ii) Expenditure on improvement of a machine in a...

(i) It is factor income to abroad, so it is not included. (ii) It is included as factor income from abroad.

(i) Bank is a production unit so this is a factor income and hence should be included. (ii) It is a part of the profits of production units which is distributed to the...

Reasons :  (i) Festival gift from an employer is not included in the estimation of national income because this is a transfer payment.  (ii) Rent free house from an employer is included...

Reasons: (i) Taking care of aged parents - Should be included because it is a productive service rendered to the parents. (ii) Payments of Corporation Tax - Should not be included because...