Economics 3 Marks Question

Stock concept.
Reason: It is related to a point of time.

Normal Resident.
Reason: As their centre of economic interest lies in the home country.

Included.
Reason: As it is within the domestic territory of our country.

Economic agents refer to those individuals or institutions which take economic decisions.

Intermediate product.
Reason: These are intermediate products because fertilizer is used for further production during the same year.

Because this is a transfer payment. Value: Implement of Knowledge.

Macroeconomics theory is called Theory of Income and Employment' because in it we try to explain how the level of income and employment are determined in an economy.

Consumer goods.
Reason: End user is consumer.

The central issues in macroeconomics relate to the overall level of employment, growth rate of national output, general price level and stability of the economy.

False.
Explanation:
As the second name of macroeconomics is theory of income and employment.

Flow concept.
Reason: It relates to a period of time.

Intermediate product.
Reason: These are intermediate products because these are purchased for resale.

Macroeconomics is that part of economics theory which study the economy as a whole.

An Indian working in Indian Embassy in the USA will be treated as normal resident of India.

Factor income.
Reason: It is earned by rendering productive services.

Factor income.
Reason: It is earned by rendering productive services.

Consumer goods.
Reason: End user is consumer.

Normal Resident.
Reason: As their centre of economic interest lies in the home country.

Stock concept.
Reason: It is related to a point of time.

It refers to the change in the stock of finished goods, semi-finished goods and raw materials. This stock keeps varying over time. This is also called as change in stock and is calculated is as,
Inventory Investment = Closing Stock - Opening Stock.

Flow concept.
Reason: It is related to a period of time.

Excluded.
Reason: As it is outside the domestic territory of our country.

Examples of macroeconomics theory are:

1. Theory of multiplier employment.
2. Income generation.

Final Product.
Reason: It is a final product as it is used by a consumer for final consumption.

Macroeconomics is the study of the behaviour of aggregates covering the entire economy such as national income, full employment, unemployment, aggregate consumption, aggregate demand, aggregate supply, general price level etc.

Flow concept.
Reason: It relates to a period of time.

Semi-durable.
Reason: As it have an expected life time of use of one year or slightly more.

These are those, which are used for:

1. Further processing (like sugar used for making sweets).
2. Resale in the same year (If car purchased by a car dealer for resale).

Consumption goods are those goods which satisfy the wants of consumers directly.

Transfer income.
Reason: It is received without rendering any productive services.

Service.
Reason: As it is non-material goods which satisfy the human wants directly.

Flow concept.
Reason: It relates to a period of time.

Transfer income.
Reason: It is received without rendering any productive services.

Intermediate product.
Reason: It is an intermediate product as wheat is used for further production during the same year or is meant for resale.

Income earned by factor of production by rendering their productive services in the production process is known as Factor Income.

Flow concept.
Reason: It is related to a period of time. (1 year)

The study of cotton textile industry is a microeconomic study.

It refers to that fund which the producers keep to cope up with the depreciation losses in the process of production.

Intermediate goods.
Reason: As it is used up while making sweets.

Included.
Reason: As it is within the domestic territory of our country.

Final product.
Reason: It is a final product as the unsold coal is an investment for the trader.

Normal Resident.
Reason: As their centre of economic interest lies in the home country.

Not a Normal Resident.
Reason: As their centre of economic interest lies in the foreign country.

Stock concept.
Reason: It relates to a point of time.

It refers to the estimated value of depreciation for all the producing units in the economy during the period of an accounting year.