Larry's Lathe-makers Limited produces lathes, which are purchased by furniture manufacturers all over the world. In the national income accounts, the lathes are classified as:

A) Intermediate goods
B) Final goods
C) Capital goods
D) Durable goods

The lathes produced by Larry's Lathe-makers Limited are classified as capital goods in the national income accounts. These are assets used repeatedly in the production of goods or services, in this case, by furniture manufacturers to produce furniture.

Explanation:

You posed the question, 'Larry's Lathe-makers Limited produces lathes, which are purchased by furniture manufacturers all over the world. In the national income accounts, how are the lathes classified?'

We can classify the lathes produced by Larry's Lathe-makers Limited according to four categories, namely, A) Intermediate goods, B) Final goods, C) Capital goods, D) Durable goods.

In this case, the lathes are considered as Capital goods. Capital goods are assets used in the production of goods or services. They are not immediately consumed in the production process; instead, they are used repeatedly. Hence, the lathes produced by Larry's Lathe-makers are capital goods as they are utilized by the furniture manufacturers to produce furniture.

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Larry's Lathe-makers Limited produces lathes, which are purchased by furniture manufacturers all over the world. In the national income accounts, the lathes are classified as:A) Intermediate goodsB) Final goodsC) Capital goodsD) Durable goods

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Larry's Lathe-makers Limited produces lathes, which are purchased by furniture manufacturers all over the world. In the national income accounts, the lathes are classified as:

A) Intermediate goods
B) Final goods
C) Capital goods
D) Durable goods