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

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

  1. True

  2. False

  3. Partially True

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

Wealth includes all goods that have value and are scarce, while capital is a subset of wealth used for further production. Therefore, all capital is wealth, but not all wealth is capital. The statement provided is the reverse of this definition, making it false.

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

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

  1. Wealth

  2. Capital

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Wealth is defined as anything that has value and can be owned. Even if a resource is lying idle, it still possesses value and constitutes wealth, though it is not currently functioning as capital.

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

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

  1. True

  2. False

  3. Partially True

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

Capital is a specific type of wealth used to produce more goods or services. Since all capital must be wealth, but not all wealth (like consumer goods) is used for production, the statement is true.

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

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

  1. Further production of wealth

  2. Yielding further income

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital is defined as a factor of production that is used to create more wealth or generate income. Both options (a) and (b) describe the functional purpose of capital.

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

The process of increase in the stock of real capital in a country is called ______________.

  1. Stock Increase

  2. Capital Formation

  3. Increase in GDP

  4. Resource Allocation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Capital formation is the process of increasing the stock of real capital, such as machinery, equipment, and infrastructure, within an economy.

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

"Capital" is considered as a "produced means of production". This statement is _________________.

  1. True

  2. False

  3. Partially True

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

Capital is not a natural resource; it is created by human effort to be used in further production, which is why it is called a produced means of production.

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

If a Resource is being used for generating further revenue, it will constitute _______________.

  1. Wealth

  2. Capital

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A resource used for generating revenue is both wealth (because it has value) and capital (because it is used in production).