Tag: economy of a village

Questions Related to economy of a village

Which of the following is an example of working capital?

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

  1. Tools

  2. Machine

  3. Building

  4. Raw Materials

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Correct Option: D
Explanation:

Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production. 

One component of fixed capital is ______.

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

  1. cash

  2. stock

  3. labour

  4. building

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Correct Option: D
Explanation:

Fixed capital is a one-time investment made at the early stages of a business. The fixed capital investment is made to cater the long term needs of a business. 

Raw materials and money in hand are called _____.

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

  1. Fixed capital

  2. Every thing

  3. Working capital

  4. Human capital

  5. None of these

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Correct Option: C
Explanation:

Raw materials and money in hand are called working capital.

Working capital is the capital required by a business on a day to day basis. 

Fixed capital stands for ______.

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

  1. money with the proprietor

  2. tools, machines, buildings etc. which can be used in production over many years

  3. money deposited in the bank

  4. total share of capital

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Correct Option: B
Explanation:

Fixed capital refers to investment in long-term assets. Management of fixed capital involves the allocation of the firm’s capital to different projects or assets with long-term implications for the business. For example, tools, machines, buildings, etc. which can be used in production over many years. 

What are 'raw materials and money in hand' called?

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

  1. Working capital

  2. Fixed capital

  3. Physical capital

  4. Human capital

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Correct Option: A
Explanation:

Working capital  is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

Those hidden qualities in a person which earn him an income and cannot be transferred from one place to another 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. human or personal capital

  4. fixed capital

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Correct Option: C
Explanation:

Human capital belongs to that person itself, it cannot be delegated or transferred from one person to another. It is an individual's effort and potential talent coinciding with the availability of proper opportunity which helps them to earn income.

Capital includes all those goods (items or commodities) which are used for further production of more goods, e.g. _______________.

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

  1. machines and tools

  2. factory buildings

  3. transport equipments

  4. all the above

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Correct Option: D
Explanation:

Capital goods are generally a long term investment as it is used to produce many different products. 

What is meant by individual capital?

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

  1. Owned by the society.

  2. Owned by one person.

  3. Owned by a group of people.

  4. Owned by the government.

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Correct Option: B
Explanation:

Individual capital refers to the capital owned by one person/individual. Summation of all the individual capital in an economy is termed as the national capital, which determines the status of an economy.

Capital is an indispensable factor of production.

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: B
Explanation:

Capital is an indispensable factor of production as it supervises other factors of production,Also it is the human capital which makes the profit possible.

What is remunerative capital?

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

  1. Capital provided to the government

  2. Capital provided to private companies

  3. Capital provided to workers in the form of wages

  4. Capital provided to the society

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Correct Option: C
Explanation:

Remunerative capital refers to the payment made to the workers for their contribution to production. It is a capital provided to workers in the form of wages. E.g. salaries, wages, allowance for food etc.