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

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

Capital $\neq$ 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

Show answer
Correct Option: B

If a Resource is being used for generating further revenue, 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)

Show answer
Correct Option: C

Income arising out of "Capital" is a ________ concept.

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

  1. Stock

  2. Flow

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: B

As a Factor of Production, "Capital" is _________________.

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

  1. A free gift of nature

  2. Produced by man alone

  3. Produced by the man working with nature

  4. Not relevant at all.

Show answer
Correct Option: C

As a Factor of Production, "Capital" is a ________ means of Production.

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

  1. Original

  2. Primary

  3. Produced

  4. Monetary

Show answer
Correct Option: C

Capital Formation is required for _____________________.

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

  1. Replacement and renovation of existing machinery and equipments

  2. Creating additional productive capacity

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C

As a Factor of Production, "Capital" is a ________ concept.

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

  1. Stock

  2. Flow

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: A

If current consumption is reduced for the purpose of Capital Formation, that represents a _________________.

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

  1. Uneconomic activity

  2. Current sacrifice for future growth

  3. Decrease in demand

  4. Decrease in resources

Show answer
Correct Option: B

Larger production of ____________ goods would lead to higher production in future.

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

  1. consumer 

  2. capital 

  3. agricultural 

  4. public 

Show answer
Correct Option: B
Explanation:

An increase in the stock of capital goods, which are used for the production of consumer goods, will lead to increased production of consumer goods and enhance the future production output.

For the purpose of Capital Formation _____________________.

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

  1. Current consumption is to be sacrificed to a certain extent

  2. Current income should be saved

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C