NATIONAL INCOME AND RELATED AGGREGATES - BASIC CONCEPTS

Capital goods are those goods

• A) which help in the production of other goods as fixed assets or inventory stocks

• B) which can be used for a long time

• C) which are purchased by money

• D) None of the above

Depreciation means

• A) Damages due to floods

• B) Damages due to market crash

• C) Normal wear and tear and expected obsolescence

• D) None of these

Intermediate goods are those goods

• A) Which are used for final consumption

• B) Which are included in national income

• C) which are used for further production

• D) All of the above

The goods which directly satisfy human wants are called

• A) Capital goods

• B) Consumer goods

• C) Intermediate goods

• D) Producer goods

A stock variable

• A) does not have a time dimension

• B) necessarily has a time dimension

• C) depends on nature of goods

• D) is related with durability

The difference between intermediate goods and final goods depends on

• A) the durability of goods

• B) the nature of their economic use

• C) the technique of production used for its production

• D) all of the above

Capital formation means

• A) Capital gain

• B) Capital loss

• C) Increase in the stock of real capital assets

• D) increase in the production capacity

Flow is that variable which

• A) is measured during a period of time

• B) is measured over a period of time

• C) is measured at a particular point of time

• D) cannot be measured

Two sector economy consist of

• A) Household and government sectors

• B) Firm and Rest of the world sector

• C) Firm and Government sector

• D) House hold and Firm sector

Which one of the following is an example of flow variable?

• A) Consumption

• B) Investment

• C) Income

• D) All the above