Tag: wealth, capital and money

Questions Related to wealth, capital and money

As a Factor of Production, "Tools and Accessories" constitute ___________________.

  1. Land

  2. Labour

  3. Capital

  4. Enterprise


Correct Option: C

Capital $\neq$ Wealth. This statement is ______________.

  1. True

  2. False

  3. Partially True

  4. None of the above


Correct Option: B

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)


Correct Option: C

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

  1. Stock

  2. Flow

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: B

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

  1. A free gift of nature

  2. Produced by man alone

  3. Produced by the man working with nature

  4. Not relevant at all.


Correct Option: C

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

  1. Original

  2. Primary

  3. Produced

  4. Monetary


Correct Option: C

Capital Formation is required for _____________________.

  1. Replacement and renovation of existing machinery and equipments

  2. Creating additional productive capacity

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: C

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

  1. Stock

  2. Flow

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: A

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

  1. Uneconomic activity

  2. Current sacrifice for future growth

  3. Decrease in demand

  4. Decrease in resources


Correct Option: B

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

  1. consumer 

  2. capital 

  3. agricultural 

  4. public 


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.