Tag: wealth, capital and money

Questions Related to wealth, capital and money

Which commodity can be called as Giffen goods?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Inferior commodity

  2. Superior commodity

  3. Any of the above

  4. None of the above

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Correct Option: A
Explanation:

Any Giffen good is an inferior good but all inferior goods cannot be Giffen goods. For Giffen goods, negative income effect is superior to substitution effect.

Which of the following is not the characteristic of human wants?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Human wants are unlimited

  2. Wants are complementary

  3. Wants are competitive

  4. Wants are non-variable

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Correct Option: D
Explanation:

Human wants are unlimited and the resources to meet them are limited and have different uses. This gives rise to all the economic problems. 

Human wants are also complementary say for example the want for butter is complementary to the want of bread. Wants are also competitive as they need to be arranged in the order of priority. 
The most urgent wants need to be satisfied first. Wants are ever changing and variable. They change with the change in income, status, education, fashion, etc.
Thus, the correct option is D.

Which of the following is not an intangible goods?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Downloadable music

  2. Mobile apps

  3. Digital book

  4. Car

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Correct Option: D
Explanation:

An intangible good is a good that does not have a physical nature, as opposed to a physical good (an object). Buying a car is one of the example of tangible good.

Consider the following statements:
Statement 1: Goods are those things which are tangible or intangible.
Statement 2: They satisfy human wants.
Which of the following are true?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Only 1

  2. Only 2

  3. None

  4. Both

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Correct Option: B
Explanation:

Goods are tangible things which imply they can be touched and seen. The intangible things satisfying human wants are termed as services. Goods also help in the satisfaction of human wants or needs.

Thus, the answer is B.

Status Symbol Commodity is associated with the name of ___________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Giffen

  2. Marshall

  3. Malthus

  4. Thorstein veblen

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Correct Option: D
Explanation:

Status Symbol Commodity is associated with the name of Thorstein Veblen. These are the luxury goods as the demand of such goods increases with increase in its price. This is a contradiction of the law of demand. Since Veblen identified the concept, hence they are also called Veblen goods.

All of the goods which are scarce and limited in supply are called _______.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. luxury goods

  2. expensive goods

  3. capital goods

  4. economic goods

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Correct Option: D
Explanation:

Scarce goods which are limited in supply are known as economic goods as economics deals with the optimum utilization of scarce resources to its alternative uses.

Goods or services that are necessary for living are called ________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. needs

  2. desires

  3. wants

  4. demands

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Correct Option: A
Explanation:

The goods and services that are necessary for a living are called needs. Needs are the essential things that you need for survival, to live properly. Thus, it is important to satisfy these needs as if we don’t satisfy needs, we will not be able to live long. For example, when we are hungry, a need arises for food.

Goods or services those are not necessary for living are ________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. needs

  2. desires

  3. wants

  4. essentials

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Correct Option: C
Explanation:

Goods or services those are not necessary for living are called wants. Goods and services that are necessary for living are called needs. Needs are the things which are necessary for survival however wants are additions to needs. For example: if one is hungry, he needs food. This is need. However if he wants to eat Dosa because he is hungry, this is called want.

Goods in the process of being produced  but not yet completed as finished goods are called ______________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. work-in-progress inventory

  2. goods in floor inventory

  3. raw material consumed inventory

  4. in process inventory

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Correct Option: A

EXIM was set up in ___________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. $1976$

  2. $1982$

  3. $1968$

  4. $1989$

Show answer
Correct Option: B
Explanation:

Export-Import Bank of India (EXIM Bank) is a specialized financial institution, owned by Government of India, set up in 1982, for financing, facilitating and promoting foreign trade of India.