Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Identify the correct pair.

Options:

A-1

B-2

C-3

D-4

Correct Answer:

D-4

Explanation:

Net investment is the net addition to existing capital stock. Fridge purchased by Ram for use in his house is a final good and not an intermediate good. Higher production of capital goods does not necessarily mean higher welfare of people. Final goods are the goods that have crossed the boundary of final production.