Tag: wealth, capital and money

Questions Related to wealth, capital and money

Which of these Industries falls in the category of Basic goods industry?

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

  1. Mineral

  2. Coal

  3. Petroleum

  4. Machine

Show answer
Correct Option: A
Explanation:

Basic goods industry produces goods which are used by other industries as raw materials. For example: minerals, as minerals are used as raw material for other industries.

In economics goods includes material things which _______.

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

  1. can be transferred

  2. can be exchanged for one another

  3. both

  4. none

Show answer
Correct Option: C
Explanation:

Economic goods refer to those goods which can be transferred from one place to another and can be exchanged for one another. For example, cloth is an economic good which can be transferred from one place to another; it can also be exchanged for another different good. ( Say pen)

 Wants that are related to consumption of goods and services is:

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

  1. Economic wants

  2. Non economic wants

  3. Economics

  4. All of the above

Show answer
Correct Option: A
Explanation:

Economic wants refer to the wants that are related to the satisfaction of own need by the way of consumption or profit earning. We fulfill these kind of wants through exchange mechanism, i.e., exchange of goods for profit.

Wants can be satisfied by the consumption of __________ are economic wants.

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

  1. goods

  2. services

  3. goods and services

  4. none of above

Show answer
Correct Option: C
Explanation:

Economic wants refer to the wants that result in monetary gain for the people who are demanding it. Therefore, to have some monetary gain there is need for consumption of some materialistic thing carrying some value for which money can be exchanged for.

Which of the following can be treated as a characteristic of economic wants?
1. Even if satisfied, the wants have a tendency to re-emerge.
2. With the passage of time, the wants tend to increase in number and in variety.
Select the correct answer from the options given below -

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

  1. 1 only

  2. 2 only

  3. Both 1 & 2

  4. Neither 1 nor 2

Show answer
Correct Option: C
Explanation:

Human wants are unlimited, so there is always a tendency that human wants get re-emerge even after the satisfaction is achieved on the consumption of the commodity as the wants keep on increasing after a passage of time and consumer also start demanding more variety of that commodity in order to achieve higher utility. 

The "means" available for satisfaction of wants are ______________.

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

  1. Sufficient

  2. Limited

  3. Either (A) or (B)

  4. Unlimited

Show answer
Correct Option: B
Explanation:

Economics aims at the satisfaction of unlimited want by the way of efficient and effective methods to put the limited resources extracted from earth into an ideal way so that even if the means available for satisfaction of wants is limited we can still satisfy them to the maximum level.

Human wants may be classified into ______________________.

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

  1. Economic wants & non-economic wants

  2. Economic wants & unsatisfied wants

  3. Satisfied wants & non-economic wants

  4. Plain wants & economic wants

Show answer
Correct Option: A
Explanation:

Human wants refers to the demands of humans in order to satisfy themselves.

Some wants results in monetary gain for the people who are demanding it known to be as economic wants whereas some wants are for the welfare of other people which is called non-economic wants.

Wants are ______________.

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

  1. Limited

  2. Unlimited

  3. Sufficient

  4. Adequate

Show answer
Correct Option: B
Explanation:

Maslow need hierarchy states that human wants are unlimited. As one want is met, it gives rise to other wants that are there in the hierarchy. Therefore, human wants are never ending because the world is very dynamic and humans try to adjust themselves into it. 

In deciding "What to produce", the economy should focus on the production of:

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

  1. Capital Goods only

  2. Consumer Goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.

An economy which uses all its resources on production of _____________ , cannot provide for future growth prospects.

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

  1. capital goods only

  2. consumer goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: B
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.