Q. Depreciation reserve fund is needed for: inventory stockadvertisementreplacement investmentNone of these Answer: replacement investment

Q. A stock variable has no time dimensionis a static conceptboth 1 and 2None of these Answer: both 1 and 2

Q. Which of the following is the cause of expected obsolescence? Natural calamitiesChange in demandChange in technologyBoth 2 and 3 Answer: Both 2 and 3

Q. Increase in the stock of capital is known as: capital losscapital gaincapital formationNone of these Answer: capital formation

Q. Which of the following leads to depreciation? Normal wear and tearDamages due to floodsDamages due to market crashNone of these Answer: Normal wear and tear

Q. Which of the following leads to unexpected obsolescence? change in demandNatural calamitieschange in technologyNone of these Answer: Natural calamities

Q. Net capital formation causes: increase in production capacityincrease in depreciationincrease in profitsincrease in cost Answer: increase in production capacity

Q. Net investment is equal to: gross investment + depreciationgross investment – depreciationgross investment * depreciationgross investment / depreciation Answer: gross investment – depreciation

Q. Which of the following is a semi-durable good? RadioClothesMilkPetrol Answer: Clothes

Q. Food processor used by the households in their kitchen is an example of: capital goodsintermediate goodsconsumption goodsnone of these Answer: consumption goods

Q. If a car is purchased by a taxi-operator, it will be regarded as a: capital goodintermediate goodfinal goodboth 1 and 3 Answer: both 1 and 3

Q. T.V, radio, washing machine, etc,. are examples of: durable consumer goodssemi-durable consumer goodssingle use consumer goodscapital goods Answer: durable consumer goods