Tag: wealth, capital and money

Questions Related to wealth, capital and money

The issue of "for whom to produce" deals with __________..

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

  1. how to distribute and share the national product

  2. shares of different people in the total output of goods & services

  3. both (a) and (b)

  4. neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

The problem of “whom to produce” relates to the distribution of available resources in the economy.

It also includes the contribution of the people in the total output and income of the economy.  

The problem of "What to produce" covers the issue relating to:

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

  1. What goods are to be produced

  2. What qualities of goods are to be produced

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

Due to the basic economic problem of scarcity, it is essential to choose which of the unlimited human wants and needs will be fulfilled by using the limited resources. This choice is usually made collectively by each economy, the laws of demand govern what people want and then the laws of supply aim to match it at an equilibrium seeking to make a profit. Thus the "what to produce?" takes into account what goods will be produced and how much of the good will be produced. 

Veblen good is ____________.

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

  1. good of status

  2. consumed by very high income group

  3. like diamond

  4. any of the above

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Correct Option: A
Explanation:

Veblen goods are those good which holds some status in the society. It is believed that if price of such goods rises then the quantity demanded also increases.  

If Willingness to Save is higher, the level of ________ will be higher.

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

  1. Voluntary Savings

  2. Compulsory Savings

  3. Forced Savings

  4. None of the above

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Correct Option: A
Explanation:

Voluntary savings are funds that individuals or organizations may willingly deposit or Withdraw. For your clients, the condition of an intended savings product means that: They can save money in a safe place to meet emergency and consumption. Required savings are those that individuals and institution are forced to make as per government rules. 

Thus, the correct option is A.

An inferior commodity is one which is consumed in smaller quantities when the income of consumer ________.

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

  1. becomes nil

  2. remains the same

  3. falls

  4. rises

Show answer
Correct Option: D
Explanation:

The price of inferior goods are very cheap and usually associated with low levels of income. So when the consumer's income rises they try to consume normal good and when there income decreases they consume inferior goods. 

The supply of a good refers to the _________.

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

  1. Actual production of the good

  2. Total existing stock of the good

  3. Stock available for sale

  4. Amount of the good offered for sale at a particular price per unit of time

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Correct Option: D
Explanation:

The supply of a good refers to the amount of the good offered for sale at a particular price per unit(period) of time.

The goods which cannot be consumed more than once is known as________________.

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

  1. Durable good

  2. Non-durable good

  3. Producer good

  4. None of the above

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Correct Option: B
Explanation:

Non durable goods cannot be consumed more than once like bread, milk etc.

If, as people's income increases, the quantity demanded for a good decreases, the good is called___________.

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

  1. A substitute

  2. A normal good

  3. An inferior good

  4. A complement

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Correct Option: C
Explanation:

In case of inferior goods, as income increases demand decreases $(Ey < 0)$.

As per the concept of increasing marginal opportunity cost, under the PPF theory, it can be interpreted that to produce more units of good X, ____________ of good Y have to be sacrificed.

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

  1. increasing units

  2. constant units

  3. decreasing units

  4. zero units

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Correct Option: A
Explanation:

The slope of the curve i.e. marginal opportunity cost which states that for production of every successive unit of butter we need to sacrifice more and more of guns because resource are use specific. 

Excise duties are levied on _______________.

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

  1. Incomes of the individual

  2. production of goods

  3. export and import of goods

  4. Incomes of the corporate

Show answer
Correct Option: B
Explanation:

Excise duties are type of taxes which are charged against the production og goods when they are sold in the market.