All Exams Test series for 1 year @ ₹349 only
Question

Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called consumption goods or consumer goods. This also includes services which are consumed but for convenience we may refer to them are as consumer goods. There are other goods that are of durable character which are used in the production process. These are tools, implements and machines. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet they are not final goods to be ultimately consumed. They are the crucial backbone of any production process, in aiding and enabling the production to take place. These goods form a part of capital, one of the crucial factors of production in which a productive enterprise has invested, and they continue to enable the production process to go on for continuous cycles of production. There are capital goods and they gradually undergo wear and tear and thus are repaired or gradually replaced over time. The stock of capital that an economy possesses is thus preserved, maintained and renewed partially or wholly over time.

Identify the Stock variable/variables:

A. Income
B. Output
C. Capital
D. Profits
E. Money Supply

The correct answer is

C and E only

A **Stock Variable** is measured at a specific point in time, while a **Flow Variable** is measured over a period of time.
- **Stock variables:** - **Capital (C)** – Represents accumulated wealth/assets at a given moment.
- **Money Supply (E)** – The total amount of money in circulation at a specific time.
- **Flow variables:** - **Income (A)** – Measured over time (monthly/yearly earnings).
- **Output (B)** – Goods/services produced in a time period.
- **Profits (D)** – Earnings over a time period.
Thus, the correct answer is **C and E only (d)**.

Was this answer helpful?

Important Questions from National Income and Related Aggregates

  1. In the calculation of GDP by Expenditure method, what should be added from the following:

    (A) Private Final Consumption expenditure

    (B) Investment Expenditure

    (C) Net imports

    (D) Net exports

    (E) Government Final Consumption Expenditure

    Choose the correct answer from the options given below:

  2. Fill in the blanks:

    In a modern economy, money comprises of _______ and _______.

  3. Which of the following makes the workers highly vulnerable?

  4. If Marginal Propensity to Consume (MPC) is 4 times the value of the Marginal Propensity to Save (MPS), determine the value of MPC:

  5. Match List-I with List-II:

    List-IList-II
    (A) Ex-ante saving(I) Actual Saving
    (B) Ex-post consumption(II) Planned Saving
    (C) Ex-ante consumption(III) Planned Consumption
    (D) Ex-post saving(IV) Actual Consumption
Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App