Match List-I with List-II
|
List-I |
List-II |
|
(A) Capital consumption |
(I) Value added |
|
(B) Part of raw material which gets used up |
(II) Intermediate consumption |
|
(C) A stock variable |
(III) Depreciation |
|
(D) A flow variable |
(IV) Inventory |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
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(A) Capital consumption is also known as (III) Depreciation. This refers to the loss in value of fixed assets due to wear and tear or obsolescence.
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(B) Part of raw material which gets used up in the production process is defined as (II) Intermediate consumption.
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(C) A stock variable is a measure at a specific point in time. (IV) Inventory is a classic example of a stock variable, as it is measured at a specific date.
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(D) A flow variable is a measure over a period of time. (I) Value added, which is measured over a year, is an example of a flow variable.