Define stock variable.
A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past. For example, bank balance as on Oct 01, 2011 is a stock variable.
| Autonomous consumption | Rs. 100 |
| Marginal Propensity to consume | Rs. 0.80 |
| Investment | Rs. 50 |
Calculate Gross Value Added at Factor Cost:
| (i) | Units of output sold (units) | 1000 |
| (ii) | Price per unit of output | 30 |
| (iii) | Depreciation(Rs.) | 1000 |
| (iv) | Intermediate cost (Rs.) | 12000 |
| (v) | Closing stock (Rs.) |
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples.
