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

What are 'raw materials and money in hand' called?

  1. Working capital

  2. Fixed capital

  3. Physical capital

  4. Human capital
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Working capital  is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

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

Those hidden qualities in a person which earn him an income and cannot be transferred from one place to another are called ________.

  1. trade capital

  2. social capital

  3. human or personal capital

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

Human capital belongs to that person itself, it cannot be delegated or transferred from one person to another. It is an individual's effort and potential talent coinciding with the availability of proper opportunity which helps them to earn income.

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

Capital includes all those goods (items or commodities) which are used for further production of more goods, e.g. _______________.

  1. machines and tools

  2. factory buildings

  3. transport equipments

  4. all the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Capital goods are generally a long term investment as it is used to produce many different products. 

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

What is meant by individual capital?

  1. Owned by the society.

  2. Owned by one person.

  3. Owned by a group of people.

  4. Owned by the government.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Individual capital refers to the capital owned by one person/individual. Summation of all the individual capital in an economy is termed as the national capital, which determines the status of an economy.

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

What is remunerative capital?

  1. Capital provided to the government

  2. Capital provided to private companies

  3. Capital provided to workers in the form of wages

  4. Capital provided to the society
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Remunerative capital refers to the payment made to the workers for their contribution to production. It is a capital provided to workers in the form of wages. E.g. salaries, wages, allowance for food etc.

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

Give an example of a sunk capital.

  1. A textile weaving machine

  2. Photographic films

  3. Railways

  4. Wool
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Sunk capital refers to assets that are specific to a particular use and cannot be easily repurposed or recovered. A textile weaving machine is designed for a specific production process, making it a classic example of sunk capital.

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

Circulating capital is directly absorbed into the finished products.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Capital gets circulated and all results into the finished products as capital holds enough significance in the functional relationship between inputs and outputs produced in an economy during a given period of time.