Macro

National Income

Medium

Which statement is not related to the inventory.

Unsold finished, or semifinished goods which a firm carries to the next year.

Inventory may have a higher value at the end of the year.

The change of inventories of a firm during a year = production – Sale

It is a flow variable.

✅ Correct Option: 4

Option 1 -> This correctly defines inventory as unsold finished or semifinished goods carried forward.

Option 2 -> This is true as inventory valuation can increase based on production levels and costs.

Option 3 -> This is the correct formula for calculating change in inventories during a period.

Option 4 -> This statement is incorrect as inventory is a stock variable, not a flow variable.

Hence, Option 4: It is a flow variable -> Inventory is a STOCK variable, not a flow variable. Stock variables are measured at a specific point in time (e.g., inventory on December 31st), while flow variables are measured over a period of time (e.g., sales during a year). Since inventory represents the quantity of goods held at a particular moment, it is classified as a stock variable. This statement is NOT related to the correct characteristics of inventory. -> correct

2025: 29 May Shift 2

Identify which of the following is not included while estimating national income?

2023: 30 May Shift 1

The Household receive transfer payments from Government and firms (Pension, Scholarship, Prizes, etc.) They are a part of :

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Capital consumption	(I) Value added
(B) Part of raw material which gets used up	(II) Intermediate consumption
(C) A stock variable	(III) Depriciation
(D) A flow variable	(IV) Inventory

Choose the correct answer from the options given below:

2026: 20 May Shift 1

Firm starts the year with an inventory of 400 shirts. During the coming year it expects to sell 2000 shirts, hence it produces 2000 shirts. The firm is able to sell only 1500 shirts. At the end of the year find out inventories.

2023: 29 May Shift 2

If output in an economy is decreasing but G.D.P. of country is increasing which G.D.P. it is:

2022: 16 July Shift 2

Identify the correct statements from the following:

A. Fees to a mechanic paid by a firm is not included in the estimation of national income

B. Income tax paid by an individual is not included in national income

C. Interest paid by a garment manufacture on a loan taken from bank is included in national income

D. Payment of old age pension will not be included in national income as it is a transfer payment

E. Insurance premium paid by household to an insurance company is not included in the estimation of national income

Choose the correct answer from the options given below:

Which statement is not related to the inventory.

Solution

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