Intermediate consumption of a firm includes

wages paid to its workersCorrect answerYour answera new machine bought during the yearCorrect answerYour answerraw materials and power bought from other firms and used up in the yearCorrect answerYour answerinterest paid on its loansCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Intermediate consumption is the inputs bought from other producers and used up.
Wages and interest are factor payments out of value added; a machine is investment.

Worth noting

Wages are a cost to the firm but they are paid out of value added, not subtracted from it.

Concept: Intermediate consumption
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsValue added method and double counting

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Intermediate consumption of a firm includes

Explanation