Which of the following is a stock variable? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is a stock variable?

A. Investment expenditure

B. National income

C. Capital stock

D. Government expenditure

Answer: Option C

Solution (By JKSSB Mock Tests)

Capital stock is measured at a point of time and is therefore a stock variable.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

Which of the following is a major objective of monetary policy in a developing country like India?

A. Price stability consistent with growth and financial stability

B. Only maximising inflation

C. Only promoting imports

D. Only maximising fiscal deficit

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The primary objective of monetary policy in India is to maintain price stability while keeping in mind the objective of growth, along with ensuring financial stability.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

The concept of 'Tobin's q' is defined as:

A. The ratio of investment to saving

B. The ratio of the market value of installed capital to its replacement cost

C. The ratio of money supply to GDP

D. The ratio of consumption to income

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Tobin's q is the ratio of the market value of a firm's capital to the replacement cost of that capital. Investment is encouraged when q > 1 and discouraged when q < 1.

This question belongs to: Economy GK Economy Set 1