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Business Studies

Consumer Responsibilities

Rent paid by ...

Question

Rent paid by a residential tenant to the owner is a part of ________.

A

capital formation

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B

final consumption

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C

intermediate consumption

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D

consumer durable

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Solution

The correct option is C final consumption
It is a final consumption as over here the residential tenant is the final consumer. Moreover, paying rent to the owner does not involve any intermediate consumption.

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