What is the correct formula to calculate

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

	Items	In crores
1	Private final consumption expenditure	397
2	Exports	28
3	Govt. Final consumption expenditure	919
4	Gross fixed capital formation	764
5	Opening stock	30
6	Closing stock	35
7	Consumption of fixed capital	100
8	Imports	50
9	Net factor income from abroad	(-)200
10	Subsidies	40
11	Indirect taxes	45

What is the correct formula to calculate change in stock?

Options:

Closing stock - opening stock

Closing stock + opening stock

Opening stock + Closing stock

Opening stock - Closing stock

Correct Answer:

Closing stock - opening stock

Explanation:

The correct formula to calculate change in stock is Closing stock - opening stock.