Tag: economy of a village

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Questions Related to economy of a village

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

In the short run which of the following is fixed?

  1. Labor

  2. Capital

  3. Raw material

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In short run period(which generally means period within 1 year)capital remains fixed as capital formation needs high investment and moreover in short run even when the output is zero some fixed cost is incurred by the firm due to capital .

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

Labour intensive technique would get chosen in a _______.

  1. Labour surplus economy

  2. Capital surplus economy

  3. Developed economy

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

The economy has to decide about technique of production on the basis of cost of labour and capital. A labour surplus economy choose labour intensive techniques and a capital surplus economy choose capital - intensive technique.

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

Find the odd option out.

  1. Capital is man-made

  2. All capital is wealth

  3. Capital is durable

  4. Mobilisation of savings
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Capital is that wealth which is used in the production of goods and services in an economy: capital and human resource have an integrated  relationship:capital has to withstand wear ,pressure, damage etc.MOBILISATION OF SAVINGS is the odd one as it is not a feature of capital

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

Capital that can be used for several purposes or by several industries is ___________.

  1. working capital

  2. social capital

  3. floating capital

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

Floating capital can be used for many purposes or by several industries. It is a part of capital that is invested in current assets of the organization, like raw materials.

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

Leather in a shoe factory is _______.

  1. fixed capital

  2. sunk capital

  3. floating capital

  4. circulating capital
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

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?

  1. i and ii

  2. iii and iv

  3. i, ii and iii

  4. ii, iii and iv
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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-

  1. I only

  2. II only

  3. Both I and II

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

What does venture capital mean?

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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).

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

Which of the following statements is correct?

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