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

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Which of the following is a stock variable?

A. Investment expenditure

B. Government expenditure

C. National income

D. Capital stock

Answer: Option D

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

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Question #1

A 'common market' includes not only free trade and a common external tariff but also:

A. common defence

B. free movement of factors of production

C. common taxation only

D. common currency

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Correct Answer: Option B

Explanation:
A common market allows free movement of goods, services, capital and labour.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of 'Reference-Dependent Preferences'?

A. Only absolute levels of wealth matter

B. Only final wealth enters utility

C. Outcomes are evaluated relative to a reference point, generating gains and losses

D. Reference points are irrelevant

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Correct Answer: Option C

Explanation:
Reference-dependent preferences, central to prospect theory, evaluate outcomes as gains or losses relative to a reference point rather than in terms of final absolute wealth levels.

This question belongs to: Economy GK Economy Set 1

Question #3

The Harrod-Domar growth model emphasizes the role of:

A. natural resources

B. saving and capital-output ratio

C. technological progress

D. population growth

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Correct Answer: Option B

Explanation:
The Harrod-Domar model emphasises saving rate and capital-output ratio as determinants of growth.

This question belongs to: Economy GK Economy Set 1

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