Match List -I with List -II.
| List I | List II | ||
| A. | Goods used in production process and are durable in character | I. | Intermediate goods |
| B. | Inputs for production | II. | Flows |
| C. | Machines in a factory | III. | Capital goods |
| D. | Annual profits | IV. | Stocks |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : A-III, B-I, C-IV, D-II
| List I | List II | ||
| A. | Goods used in production process and are durable in character | III.Capital goods goods | |
| B. | Inputs for production | I.Intermediate | |
| C. | Machines in a factory | II.Flows | |
| D. | Annual profits | IV. Stocks | |
(A) Goods used in production process and are durable in character (III) Capital goods: Capital goods are durable goods used in the production process to manufacture other goods.
(B) Inputs for production (l) Intermediate goods: Intermediate goods are inputs used in the production process but are not the
final product.
(C) Machines in a factory (IV) Stocks: Machines in a factory are considered part of the capital stock or capital goods.
(D) Annual profits (II) Flows: Annual profits represent a flow of income over a period, rather than a stock of goods or assets.