Tag: capital

Questions Related to capital

Leather in a shoe factory is _______.

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

  1. fixed capital

  2. sunk capital

  3. floating capital

  4. circulating capital

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Correct Option: C
Explanation:

Floating capital refers to the raw material part of the capital also known as working capital which can be used in many ways in the factory. Therefore, leather in a shoe factory is a floating capital.

Machines and tools are included in ________.

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

  1. circulating capital

  2. fixed capital

  3. floating capital

  4. sunk capital

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Correct Option: B
Explanation:

Machines and tools are fixed capital  they are fixed assets(assets which are purchased for long term use and are not likely to be converted quickly into cash)

Consider the following groups of items:
(i)Factory buildings
(ii)Plant and Machinery
(iii) Stocks of raw materials
(iv)Wage bills
Which of these are known as working capital?

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

  1. i and ii

  2. iii and iv

  3. i, ii and iii

  4. ii, iii and iv

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Correct Option: B
Explanation:

Working capital refers to those goods which are used to run the day-to-day activities in an organization. Thus stocks of raw materials and wage bills comprise the working capital.

In economics, the term 'capital' means-
I. Money introduced in business.
II. Things like tools, machines & equipment.
Select the correct answer from the options given below-

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

  1. I only

  2. II only

  3. Both I and II

  4. None of the above

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Correct Option: C
Explanation:

Capital is the overall investment that is done in the business which is used either in the form of money or converted into assets, like tools, machines and equipment which are used productively to yield output.

What does venture capital mean?

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

  1. A short-term capital provided to industries

  2. A long-term start-up capital provided to new entrepreneurs

  3. Funds provided to industries at times of incurring losses

  4. Funds provided for replacement and renovation of industries

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Correct Option: B
Explanation:

Entrepreneurs with ideas but lacking capital seek funds through the 'venture capital funds', In the RBI's classification such funds fall under Alternative Investment Funds (AIFs).

Which of the following statements is correct?

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

  1. Robbins defined economics in the form of welfare economics.

  2. The law of demand is always true.

  3. All capital is wealth, but all wealth is not capital.

  4. None of the above.

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Correct Option: C
Explanation:

Capital is a part of wealth which can be utilized for supplementary production of wealth. Hence, all money/wealth is not said to be capital, but only that which is engrossed in generation of more income.
Law of demand has certain exceptions. While, Robbins defined economics under the scarcity approach.

All Wealth is Capital, but all Capital is not Wealth. This statement is _____________.

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

  1. True

  2. False

  3. Partially True

  4. None of the above

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Correct Option: B

If a Resource is lying idle, it will constitute ______________.

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

  1. Wealth

  2. Capital

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: A

All Capital is Wealth, but all Wealth is not Capital. This statement is ____________.

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

  1. True

  2. False

  3. Partially True

  4. None of the above

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Correct Option: A

As a Factor of Production, "Capital" can be used for _______________.

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

  1. Further production of wealth

  2. Yielding further income

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: C