If GCF is 500 and fixed capital formation is 430, what will be the change in inventories (stock)?
Answer and explanation
Correct answer: 70
Gross capital formation is composed of gross fixed capital formation plus changes in inventories or stock: GCF = fixed capital formation + change in stock. Substituting the given values, change in stock = 500 − 430 = 70. Therefore, the correct answer is 70, assuming both figures are expressed in the same monetary unit.
Frequently asked questions
What is the correct answer to this question?
70
Why is this the correct answer?
Gross capital formation is composed of gross fixed capital formation plus changes in inventories or stock: GCF = fixed capital formation + change in stock. Substituting the given values, change in stock = 500 − 430 = 70. Therefore, the correct answer is 70, assuming both figures are expressed in the same monetary unit.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
