Advertisement Remove all ads

Match the Following : (1) Tea and Coffee (2) Stock (3) Labour (4) National Income (5) Clearing House System A) Wages (B) Flow Concept (C) Central Bank (D) Commercial Bank - Economics

Match the following : 

  Group 'A'   Group 'B'
1 Tea and coffee a Wages
2 Stock b Flow concept
3 Labour c Central bank
4 National income d Commercial bank
5 Clearinghouse system e Complementary goods
    f Rent
    g Potential supply
    h Substitute Goods
Advertisement Remove all ads


  Group 'A'   Group 'B'
1 Tea and coffee h Substitute Goods
2 Stock g Potential supply
3 Labour a Wages
4 National income b Flow concept
5 Clearinghouse system c Central bank

(1) Tea and coffee are substitute goods as they can be consumed in place of each other. Complementary goods, on the other hand, are the ones taken together such as tea and sugar. 
(2) Stock refers to the total goods that are available for sales and is called potential supply. Supply, on the other hand, is the stock which the producer is willing to sell at a particular price and time. Thus, the stock can be said as potential stock.
(3) Labour refers to the people who actually use the land and capital to produce goods. It includes all physical and mental efforts of workers, employees, managers etc. The reward or return of labour is called wages.
(4) National income is a flow concept because it is measured over a period of time. For instance, income earned over the month of January.
(5) Central Bank acts as a clearinghouse for the commercial banks. As a clearinghouse, it settles inter-bank claims and reduces the need for cash reserves by the commercial banks.

Concept: Introduction and Features of Micro Economics
  Is there an error in this question or solution?
Advertisement Remove all ads


Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads

View all notifications

      Forgot password?
View in app×