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.

Question

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.

Team Careers360 · Accepted Answer

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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Printer purchased by lawyer is an intermediate good.

Question : Statement 1: Gross Domestic Product (GDP) is a measure of the total output of final goods and services produced within a country's borders.

Statement 2: GDP excludes the value of intermediate goods and services used in production.

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