Question : The expenditure incurred on purchase or construction of owner- occupied houses is treated as __________________________.
Option 1: Current transfer
Option 2: Capital formation
Option 3: Transfer income
Option 4: Mixed income.
Answer (1)
15th Jan, 2024
Correct Answer: Capital formation
Solution :
The expenditure incurred on purchase or construction of owner- occupied houses is treated as capital formation. Other expenditure such as AC, cars, etc are treated as private final consumption expediture.
Hence, Option B is correct.
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