Question : Change in stock is zero when
Option 1: Private final consumption expenditure = Government final consumption expenditure.
Option 2: Gross domestic capital formation = Gross domestic fixed capital formation.
Option 3: Government final consumption expenditure = Gross domestic fixed capital formation.
Option 4: Net exports= Exports-Imports
Correct Answer: Gross domestic capital formation = Gross domestic fixed capital formation.
Solution : Change in stock is a component of gross domestic capital formation. Change in stock is zero when gross domestic capital formation is equals to gross domestic fixed capital formation. Hence option B is correct.
Question : _____________________ is the expenditure incurred by the central government on various administrative services.
Question : ___________________ includes expenditure incurred by house for final consumption expenditure and private non-profit institutions serving household final consumption expenditure.
Question : _____________________ is equal to the cost of goods and services produced by the collective used by the public.
Question : The difference between gross and net investment is ___________.
Question : ____________ refers to the total expenditure incurred by all private firms on capital goods.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile