Tag: economy of a village

Questions Related to economy of a village

Ability to Save depends upon _________________.

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

  1. Average level of income

  2. Distribution of national income.

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

For the purpose of Capital Formation, which of the following create "Savings" in an economy?

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

  1. Individuals or Households

  2. Business Enterprises

  3. Government

  4. All of the above

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Correct Option: D

Which of these is a source of savings for Government?

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

  1. Tax and Fees Collections

  2. Profits of PSUs

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

Capital Formation involves ___________________.

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

  1. Creation of Savings

  2. Mobilisation of Savings

  3. Investment of Savings into Real Capital

  4. All of the above

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Correct Option: D

Real Capital Formation requires ___________________.

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

  1. An entrepreneurial class which is prepared to bear the risk of business

  2. Economic and industrial policies in which Investment is given initiative

  3. An inducement to invest, e.g. prospective rate of profit

  4. All of the above

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Correct Option: D

Inducement to Invest is influenced by _______________________.

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

  1. Prospective Rate of Profit

  2. Rate of Interest

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C

In the pre-reforms period (i.e. before 1991), import permission was available primarily for _______________.

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

  1. Consumer Goods

  2. Capital Goods

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: B

Under Cobb- Douglas production function contribution of capital and labour respectively _________________.

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

  1. $3/4^{th} , 1/4^{th}$

  2. $1/4^{th} , 3/4^{th}$

  3. 1/2, 1/2

  4. none of the above

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Correct Option: B

In the pre-reforms period (i.e. before 1991), import permission was available primarily for ________________.

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

  1. Capital Equipment

  2. Machinery

  3. Industrial Raw Material

  4. All of the above

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Correct Option: D

Gross capital formation in India is very ___________.

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

  1. high

  2. low

  3. uncertain

  4. dynamic

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Correct Option: B