Tag: capital

Questions Related to capital

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.

The __________ capital helps a labourer to produce goods.

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. auxiliary capital

  4. concrete capital

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Correct Option: C
Explanation:


Auxiliary means to help or helping hence auxiliary capital helps laborers produce goods. 

Give an example of a sunk capital.

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

  1. A textile weaving machine

  2. Photographic films

  3. Railways

  4. Wool

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Correct Option: A

Capital ____________ over a period of time. 

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

  1. appreciates

  2. depreciates

  3. compensates

  4. demonstrates

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Correct Option: B

Circulating capital is directly absorbed into the finished products.

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 gets circulated and all results into the finished products as capital holds enough significance in the functional relationship between inputs and outputs produced in an economy during a given period of time.