Question : Which amongst the following statments are true?
- Intermediate goods have direct demand while final goods have derived demand.
- National Income is always more than Domestic income.
- Final goods includes only those goods which are consumed by the households or purchased by the producers for investment purposes.
Option 1: 1&2
Option 2: 2&3
Option 3: Only 3
Option 4: Only 2
Answer (1)
24th Jan, 2024
Correct Answer: Only 3
Solution :
Intermediate goods have a derived demand as their demand depends upon demand for the final goods. The final goods have a direct demand as you satisfy the ones directly.
National income can also be less than domestic income the net factor income from abroad is negative. It can always more than the domestic income only when net factor income from abroad is positive.
Final goods include those goods which are either consumed by the households or purchase by the producers for investment purpose.
Hence, Option C is correct.
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