Question : Change in stock is zero when
Option 1: Private final consumption expenditure = Government final consumption expenditure.
Option 2: Gross domestic capital formation = Gross domestic fixed capital formation.
Option 3: Government final consumption expenditure = Gross domestic fixed capital formation.
Option 4: Net exports= Exports-Imports
Correct Answer: Gross domestic capital formation = Gross domestic fixed capital formation.
Solution : Change in stock is a component of gross domestic capital formation. Change in stock is zero when gross domestic capital formation is equals to gross domestic fixed capital formation. Hence option B is correct.
Question : _____________________ is the expenditure incurred by the central government on various administrative services.
Option 1: Private final consumption expenditure.
Option 2: Government final consumption expenditure.
Option 3: Gross domestic capital formation.
Option 4: Net exports
Question : _____________________ is equal to the cost of goods and services produced by the collective used by the public.
Option 1: Government final consumption expenditure.
Option 2: Private final consumption expenditure.
Option 4: Net exports.
Question : The difference between gross and net investment is ___________.
Option 1: Change in stock
Option 2: Gross domestic capital formation
Option 3: Depreciation
Option 4: Gross domestic fixed capital formation.
Question : ____________ refers to the total expenditure incurred by all private firms on capital goods.
Option 3: Investment expenditure.
Question : Gross domestic capital formation includes _____________________.
Option 1: Gross domestic fixed capital formation
Option 2: Change in stock.
Option 3: Both A and B
Option 4: Only B
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