Basic Concepts of Macroeconomics

Classification of goods depends upon the ___________.

• Consumption of goods

• production of goods

• first-use of goods

• end-use of goods

Those goods which satisfy human wants directly are called:

• Intermediate Goods

• Consumer Goods

• Capital Goods

• None of these

Capital goods are those goods :

• which are used in the production process for several years.

• which are used in the production process for few years.

• which involve depreciation losses.

• both a and c

Food processor used by the households in the kitchen is an example of:

• Capital goods

• Intermediate goods

• Consumption goods

• none of these

T.V., radio, washing machine are examples of ____________

• durable consumer goods

• semi-durable consumer goods

• single-use consumer goods

• capital goods

Increase in the stock of capital is known as:

• capital loss

• capital gain

• capital formation

• both b and c

Which of the following is a semi-durable good?

• Radio

• Clothes

• Milk

• Petrol

Depreciation Reserve Fund is needed for :

• Inventory Stock

• Advertisement

• Replacement Investment

• None of these

Net investment is equal to:

• gross investment + depreciation

• gross investment - depreciation

• gross investment x depreciation

• gross investment / depreciation

Which of the following is the cause of expected obsolescence?

• natural calamities

• change in demand

• change in technology

• both b and c