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Why durable capital good purchased by government for defense services are treated as intermediate goods?explain.

Posted by Yogita .. 1 year, 5 months ago

CBSE > Class 12 > Economics

1 answers

Riya Sinha 1 year, 5 months ago

I think because they are not always used for final consumption by consumers. They are often used to make other military items such as nuclear weapons, missiles etc. by the government. So, they are not included in the final goods and are taken as intermediate goods.

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