Tag: concept of consumption function, saving function and investment function

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Questions Related to concept of consumption function, saving function and investment function

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

What is meant by individual capital?

  1. Owned by the society.

  2. Owned by one person.

  3. Owned by a group of people.

  4. Owned by the government.
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

What is remunerative capital?

  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
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

Give an example of a sunk capital.

  1. A textile weaving machine

  2. Photographic films

  3. Railways

  4. Wool
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Sunk capital refers to assets that are specific to a particular use and cannot be easily repurposed or recovered. A textile weaving machine is designed for a specific production process, making it a classic example of sunk capital.

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

Circulating capital is directly absorbed into the finished products.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

The functions of capital include provision for subsistence, provision for appliances, _______.

  1. provision for raw material

  2. provision for marketing and sales promotion

  3. economic development

  4. all the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Capital has a large set of effects and is generally used for multiple purposes. 

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

Those producer goods having a long life which can be used again and again in production processes are called ___________.

  1. trade capital

  2. fixed capital

  3. social capital

  4. human capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fixed capital refers to durable producer goods, such as machinery or buildings, that are used repeatedly in the production process over a long period. Unlike circulating capital, they do not change their form during production.