Question

Identify the correct statements :
(A) Stocks are defined over a period of time.
(B) Flows are defined over a period of time.
(C) Flows are defined at a particular point of time.
(D) Stocks are defined at a particular point of time.
(E) GVA at factor costs + Indirect Taxes – Subsidies = GVA at market prices.
Choose the correct answer from the options given below :

• A. (A), (C) and (E) only
• B. (B), (C) and (D) only
• C. (B), (D) and (E) only
• D. (C), (D) and (E) only

Answer 1

The Correct Option is C

Identify the following statements as true or false, applying economic principles of stocks and flows, and the computation of Gross Value Added (GVA) at various cost bases.

Analysis:

(A) Stocks are defined over a period of time. - False. Stocks represent quantities measured at a specific moment, not across a duration.

(B) Flows are defined over a period of time. - True. Flows quantify changes occurring over a defined duration, indicating their rate.

(C) Flows are defined at a particular point of time. - False. As previously stated, flows are measured over a time interval.

(D) Stocks are defined at a particular point of time. - True. Stocks are static measurements taken at a precise moment.

(E) GVA at factor costs + Indirect Taxes – Subsidies = GVA at market prices. - True. This equation correctly derives GVA at market prices from GVA at factor costs by incorporating indirect taxes and subsidies.

Summary of Correct Statements: The accurate statements are derived from fundamental economic definitions:

• (B) Flows are defined over a period of time.
• (D) Stocks are defined at a particular point of time.
• (E) GVA at factor costs + Indirect Taxes – Subsidies = GVA at market prices.

Therefore, the correct statements are (B), (D), and (E) exclusively.