Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A)Capital goods are a type of intermediate good.
• B)Capital goods are final goods because they are not used up during a given year.
• C)Capital goods are produced in the same year as the related final goods,whereas intermediate goods are produced in different years.
• D)Capital goods are produced in one year and final goods are produced over a period of more than one year.

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Definitions:

Indirect Business Taxes

Taxes imposed on goods and services that are passed on to the buyer, such as sales taxes or value-added taxes.

Corporate Income Taxes

Taxes imposed on the net income (profit) of corporations, determined by the legal jurisdiction of the business operations.

Depreciation

Depreciation refers to the reduction in the value of an asset over time due to wear and tear, obsolescence, or age.

Capital Equipment

Long-lasting goods that are utilized in the production of other goods or services, such as machinery, buildings, and vehicles.