Define capital goods.
Capital goods consist of any tangible assets that an organization uses to produce goods or services such as office buildings, equipment and machinery. Capital goods are used for the production process several times and add to the productive capacity and to the capital stock of the country.
Calculate Gross Value Added at Factor Cost:
| (i) | Units of output sold (units) | 1000 |
| (ii) | Price per unit of output | 30 |
| (iii) | Depreciation(Rs.) | 1000 |
| (iv) | Intermediate cost (Rs.) | 12000 |
| (v) | Closing stock (Rs.) |
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.
| Autonomous consumption | Rs. 100 |
| Marginal Propensity to consume | Rs. 0.80 |
| Investment | Rs. 50 |
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples.
