Identify the correct statements:
(A) Stocks are defined over a period of time.
(B) Flows are defined over a period of time.
(C) Flows are defined at a particular point of time.
(D) Stocks are defined at a particular point of time..
(E) GVA at factor costs + Indirect Taxes = Subsidies GVA at market prices.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (D) and (E) only
Let's break down each statement:
(A) Stocks are defined over a period of time. - This statement is incorrect. Stocks are quantities measured at a specific point in time.
(B) Flows are defined over a period of time. - This statement is correct. Flows represent quantities that occur over a period of time, like income or expenditure.
(C) Flows are defined at a particular point of time. - This statement is incorrect. Flows occur over a period of time.
(D) Stocks are defined at a particular point of time. - This statement is correct. Stocks represent quantities measured at a specific point in time, like inventory levels or wealth.
(E) GVA at factor costs + Indirect Taxes = Subsidies + GVA at market prices. - This statement is correct.
Thus, GVA at factor costs + Indirect Taxes - Subsidies = GVA at market prices.