Q. Problem of double counting can be avoided by using: final output methodvalue-added methodboth 1 and 2neither 1 nor 2 Answer: both 1 and 2

Q. Money flow involves the exchange of: Goods and servicesGiftsMoneyNone of these Answer: Money

Q. Real flow is also known as: Nominal flowPhysical flowMoney flowBoth a) and b) Answer: Physical flow

Q. Stock variable is defined as a variable that is Measured over a period of timeMeasured at a particular point in timeCan not be measuredNone of these Answer: Measured at a particular point in time

Q. Losses are classified as: Stock variableFlow variableEither a) or b)Neither a) nor b) Answer: Flow variable

Q. Two-sector economy consists of: Households, firmsFirms, Foreign sectorHouseholds, GovernmentFirms, Government Answer: Households, firms

Q. Which of the following is not an example of a flow variable? Number of births during a yearNational WealthNational IncomeWheat produced during a year Answer: National Wealth

Q. Which of the following is not considered a factor of income? RentWagesGifts from abroadProfit Answer: Gifts from abroad

Q. Which of the following is a phase of the circular flow of income? Generation PhaseDistribution PhaseDisposition PhaseAll of these Answer: All of these

Q. Which of the following is not a part of the final expenditure? Consumer goods purchased by the governmentConsumer goods exported to the rest of the worldSeeds purchased by the farmersGovernment fixed investment expenditure Answer: Seeds purchased by the farmers