Multiple choice

Imputed gross rent of owner - occupied buildings is a part of _____.

  1. capital formation

  2. final consumption

  3. intermediate consumption

  4. consumer durable
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In national income accounting, imputed rent of owner-occupied dwellings is treated as if the owner-tenant pays rent to himself. This imputed rent is included in final consumption expenditure because it represents the value of housing services consumed by households. Capital formation refers to investment in physical assets, intermediate consumption is used up in production, and consumer durables are tangible goods - none of these apply to imputed rent.

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