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.
