23 Which of the following is classified as an intermediate g

23) Which of the following is classified as an intermediate g the purchase of a Big Mac by a college student ii) McDonald\'s purchase of pickles )a McDonaldt\'s restaurant owner\'s interest payment for the losn ons her bnuilding A) ii only B) ii and C) i only D) i and iii E) i, ii and i 24) Consumption expenditure includes spending A) on intermediate goods and services by firms. B) on office supplies by firms C) by households. D) by households and spending on office supplies by firms. E) by governments when they are buying goods and services that consumers also buy 25) Investment is the expenditure done by A) savers. B) firms. C) governments. D) the rest of the world. ) Both answers A and B are correct.

Solution

(23) (A)

An intermediate good is an input to the production process. Option (i) is a final good and option (iii) is an expense (cost), so both options are incorrect.

(24) (C)

Consumption expenditure refers to the expenditure on final goods and services by households.

(25) (B)