Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Expenditure on goods and services goes back to the_____in the form of receipts from their sales.
Which of the following options suit best in the above blank?

Options:

Consumers

Producers

Government

Society

Correct Answer:

Producers

Explanation:

The correct answer is Option 2: Producers

Explanation:

  • Producers are the entities that produce goods and services for sale in the market.
  • When consumers purchase goods and services, they pay money to the producers.
  • This expenditure by consumers becomes revenue for producers when they sell their goods and services.
  • Therefore, the expenditure made by consumers ultimately goes back to the producers in the form of sales receipts.