Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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 :

Options:

A-I, B-II, C-III, D-IV

A-I, B-III, C-I, D-IV

A-I, B-III, C-IV, D-II

A-III, B-I, C-IV, D-II

Correct Answer:

A-III, B-I, C-IV, D-II

Explanation:

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.