Tag: economy of a village

Questions Related to economy of a village

As a Factor of Production, "Capital" is _________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. A free gift of nature

  2. Produced by man alone

  3. Produced by the man working with nature

  4. Not relevant at all.

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Correct Option: C

As a Factor of Production, "Capital" is a ________ means of Production.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Original

  2. Primary

  3. Produced

  4. Monetary

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Correct Option: C

Capital Formation is required for _____________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Replacement and renovation of existing machinery and equipments

  2. Creating additional productive capacity

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

As a Factor of Production, "Capital" is a ________ concept.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Stock

  2. Flow

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: A

If current consumption is reduced for the purpose of Capital Formation, that represents a _________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Uneconomic activity

  2. Current sacrifice for future growth

  3. Decrease in demand

  4. Decrease in resources

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Correct Option: B

Larger production of ____________ goods would lead to higher production in future.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. consumer 

  2. capital 

  3. agricultural 

  4. public 

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Correct Option: B
Explanation:

An increase in the stock of capital goods, which are used for the production of consumer goods, will lead to increased production of consumer goods and enhance the future production output.

For the purpose of Capital Formation _____________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Current consumption is to be sacrificed to a certain extent

  2. Current income should be saved

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

A 100% Consumption Economy ______________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Cannot have any Capital Formation

  2. Will become static and cannot grow

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

Capital Formation is possible by _______________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Using whole of the current capacity to produce only Consumer Goods

  2. Reducing present consumption to a certain extent

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: B

Capital Formation is required for _________________.

economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

  1. Increasing the efficiency of production efforts

  2. Expansion of output of consumer goods in the future.

  3. Ensuring growth of the economy

  4. All the above

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Correct Option: D