Question

Non factor inputs are known as ________.

• A. past consumption
• B. current consumption
• C. intermediate consumption
• D. captive consumption

Answer 1

Answer: (C)

Non-factor inputs are those goods which are not required in the production process directly but they are needed indirectly and hence they are not treated as final goods. Thus, non factor inputs are known as intermediate consumption since they are indirectly used in order to produce finished goods and services.