Tag: capital

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Questions Related to 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).

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" 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.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital is created by human labor acting upon natural resources. It is neither a free gift of nature nor produced by man alone without raw materials.

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" is a ________ means of Production.

  1. Original

  2. Primary

  3. Produced

  4. Monetary
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital is classified as a produced means of production because it is created by humans to facilitate further production, unlike land which is an original or primary factor.

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

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)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital formation is essential for both maintaining existing productive capacity (replacement/renovation) and expanding it (additional capacity).