Question

Expenditure of one is the income of other. Elucidate this statement.​

Answer 1

Answer:

Explanation:

It is true as The firms produce and the households consumes.The firm produces goods which are consumed by households.the firm sells goods on a price Say Cost from that they earn the income.the one who buys the goods is consumer and pays the amount for buying a project so it is ak expenditure for him.

Another example can be households provide labpur to firms and in return the firms provide salaries to them therefor the salary is the income for householes but the expenditure for firm.

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