Tag: capital

Questions Related to capital

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

Capital helps in increasing production and productivity.

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:

Capital helps to improve the production,that is ,the action of transforming things from raw materials to finished products.It also helps in increasing the productivity,that is,the ability to produce things in a more efficient and effective manner.

Capital is not the core of economic development.

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:

Capital is a passive factor of production thus it is not the core of economic development. Economic development of a country depends on several factors including capital.

Capital is a gift of nature.

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 man-made and not a free gift of nature. For example, machinery.

Countries like U.S.A. and some western countries have high per capita income, but the people over there have lower savings.

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

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

Western countries have high per capita income and thus they have higher savings and investment in their respective economy.