Tag: economy of a village

Questions Related to economy of a village

The capital which directly helps in the production of goods, e.g. machines, tools, factories, etc. is termed as ____________.

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

  1. consumption capital

  2. production capital

  3. private capital

  4. public capital

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Correct Option: B
Explanation:

Production capital refers to that capital which is associated with the production mechanism directly. It is used in the process of production in the physical form, i.e, in the form of machines, tools, etc.

All those goods which a person uses in his trade or occupation are referred as __________.

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

  1. trade capital

  2. social capital

  3. human personal capital

  4. fixed capital

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Correct Option: A
Explanation:

Trade capital is referred to as the amount of money entrepreneurs allocate to buying and selling goods.

When the capital is obtained from foreign countries and used in our country, it is called ___________.

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

  1. external capital

  2. internal capital

  3. national capital

  4. international capital

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Correct Option: A

The capital spent on food, clothing, housing, etc. is termed as __________.

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

  1. production capital

  2. consumption capital

  3. private capital

  4. public capital

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Correct Option: B
Explanation:

Consumption capital is the money set aside for daily consumption purposes.

All those items that yield income to the society e.g. machinery, plant, factories, farms, canals, railways, mines, etc. are called ___________.

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

  1. trade capital

  2. social capital

  3. personal capital

  4. circulating capital

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Correct Option: B
Explanation:

Machinery, plant, factories, canals, railways, mines, etc is the infrastructure that assists in yielding income for the society. Thus, they are known as social capital.

International Monetary Fund, World Bank, etc. are the examples of __________.

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

  1. internal capital

  2. external capital

  3. national capital

  4. international capital

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Correct Option: D
Explanation:

The capital obtained for investment purposes is obtained from an said international group. 

The capital owned by a group of people or a business, which is run by a family or a group, is known as __________.

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

  1. collective capital

  2. individual capital

  3. national capital

  4. international capital

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Correct Option: A
Explanation:

Collective capital is the capital owned by a group of people or a business, which is run by a group or family. In this case, all the people of the group or family collectively use the benefits derived from the utilization of that capital.

The most important function of capital is to promote the ___________.

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

  1. economic growth of the country

  2. advertisement of the product

  3. payment of wages to the workers

  4. none of the above

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Correct Option: A
Explanation:

Capital is used to produce goods and services and hence is important efficient growth of an economy. 

The supply of capital is increased or diminished by the efforts of man.

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

  1. True

  2. False

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Correct Option: A
Explanation:

Efficiency of labour is directly proportional to the supply of capital in an economy, thus supply of capital is increased or decreased by the efforts of man accordingly.

Higher income of people enables them to save more as compared to lower income.

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

  1. True

  2. False

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Correct Option: A