Question

Match List-I (Concepts) with List-II (Definitions/Examples): \[ \small \begin{array}{|c|p{4.2cm}|c|p{5.8cm}|} \hline \multicolumn{2}{|c|}{List-I (Concepts) & \multicolumn{2}{c|}{List-II (Definitions/Examples) \hline (A) & Intermediate Goods & (I) & Unexpected rise in sales leads to stock depletion \hline (B) & Unplanned Accumulation of Inventories & (II) & Production - Sales \hline (C) & Change in Inventories Formula & (III) & Completely used in the production process \hline (D) & Unplanned Decumulation of Inventories & (IV) & Unexpected fall in sales leads to unsold stock \hline \end{array} \] Choose the correct answer from the options given below:

• A. (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
• B. (A)-(IV), (B)-(I), (C)-(III), (D)-(II)
• C. (A)-(II), (B)-(III), (C)-(I), (D)-(IV)
• D. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)

Hint:

Inventory Change: \[ \mathrm{Production - Sales} \] Unplanned accumulation: \[ \mathrm{Sales < Production} \] Unplanned decumulation: \[ \mathrm{Sales > Production} \]

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question deals with the terminology used in national income accounting and inventory management.
Step 2: Detailed Explanation (Matching):
(A) Intermediate Goods \( \rightarrow \) (III):
Intermediate goods are those that are purchased by one firm from another and are either completely used up in the production process (like electricity) or undergo further transformation (like flour used by a baker) within the same year.
(B) Unplanned Accumulation \( \rightarrow \) (IV):
If a firm plans to sell 100 units but consumers only buy 80, the extra 20 units will pile up in the warehouse unexpectedly. This is "unplanned accumulation" due to a fall in sales.
(C) Change in Inventories \( \rightarrow \) (II):
The change in stock over a period is essentially the difference between what was produced and what was sold. If Production \(>\) Sales, inventory increases. If Production \(<\) Sales, inventory decreases.
(D) Unplanned Decumulation \( \rightarrow \) (I):
If a firm plans to sell 100 units but suddenly consumers buy 120, the firm must take 20 units from its existing stock to meet demand. This unexpected depletion of stock is "unplanned decumulation."
Step 3: Final Answer
The matching is (A)-(III), (B)-(IV), (C)-(II), and (D)-(I), which corresponds to option (A).