Question : Which of the following are true?
- Purchase of machines by a producer is an intermediate good.
- Unexpected obsolescence is a component of depreciation.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Answer (1)
24th Jan, 2024
Correct Answer:
Both are false.
Solution :
Purchase of machinery by a producer is a final good because it is purchased for investment purpose.
Only expected obsolescence is a component of depreciation not unexpected obsolescence.
Hence, Option B is correct.
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