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

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

Capital which is invested in the private sector or by people privately is known as ____________.

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

  1. public capital

  2. private capital

  3. national capital

  4. international capital

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Correct Option: B
Explanation:

Private capital refers to that capital which is invested in the private sector or by people privately. This capital is used to generate income for the people operating in the private sector.

_________ capital includes all the private and public capital in a country.

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

  1. Internal

  2. External

  3. National

  4. International

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Correct Option: C
Explanation:

National capital is the total capital in the country. It includes all the public capital as well as the privately owned capital in the economy.

When the capital of a country is used within its territory, it is called __________.

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

  1. external capital

  2. internal capital

  3. ntional capital

  4. international capital

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Correct Option: B
Explanation:

When the capital formed in a country is used within the domestic boundary of the country for any production process, it is known as internal capital.

The capital which directly helps in the production of goods, e.g. machines, tools, factories, etc. is termed as ____________.

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

  1. consumption capital

  2. production capital

  3. private capital

  4. public capital

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Correct Option: B
Explanation:

Production capital refers to that capital which is associated with the production mechanism directly. It is used in the process of production in the physical form, i.e, in the form of machines, tools, etc.

All those goods which a person uses in his trade or occupation are referred as __________.

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 personal capital

  4. fixed capital

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Correct Option: A
Explanation:

Trade capital is referred to as the amount of money entrepreneurs allocate to buying and selling goods.

When the capital is obtained from foreign countries and used in our country, it is called ___________.

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

  1. external capital

  2. internal capital

  3. national capital

  4. international capital

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Correct Option: A

The capital spent on food, clothing, housing, etc. is termed as __________.

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

  1. production capital

  2. consumption capital

  3. private capital

  4. public capital

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Correct Option: B
Explanation:

Consumption capital is the money set aside for daily consumption purposes.

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.