Capital

Question 1

Capital meaning?

Answer 1

Produced means of production

Question 2

3 types of capital?

Answer 2

Money capital, Real capital, Debt capital

Question 3

The machinery, raw materials, factory sheds, semi finished goods, etc are examples of ………………………….

Answer 3

real capital

Question 4

Real capital is also called …………………..

Answer 4

concrete capital

Question 5

If debentures are purchased in an individual’s name, it is …………………….. capital

Answer 5

Personal capital

Question 6

Capital held by proprietors, share-holders, or partners of any business firm is ………………….. capital

Answer 6

Business capital

Question 7

What are the two groups of business capital?

Answer 7

Fixed capital and Working or circulating capital

Question 8

The capital which does not change it’s form or gets totally used up within a single round of production is called ………………….

Answer 8

Fixed capital

Question 9

Machines and other durable goods used in production are examples of …………………

Answer 9

fixed capital

Question 10

The capital which gets exhausted after its use is called …………………………………..

Answer 10

Working or circulating capital

Question 11

Raw materials used in the production process are examples of ………………….

Answer 11

Working or circulating capital

Question 12

If the ownership of the capital lies within the state for the greater benefit of the society, it is called …………………………..

Answer 12

social capital

Question 13

The type of capital which can be used in alternative lines of production is called …………………….

Answer 13

floating capital

Question 14

Steel which can be used in alternative lines of production for making different types of machines is called ……………………………..

Answer 14

Floating capital

Question 15

The concept of sunk capital is related to ……………………..

Answer 15

Asset specificity

Question 16

The capital which cannot be used in alternate lines of production is called ………………………….

Answer 16

sunk capital

Question 17

Capital is the mixed result of ……………………….

Answer 17

past labour

Question 18

Capital always ……………………

Answer 18

depreciates

Question 19

Capital as a factor of production is ……………………

Answer 19

highly mobile

Question 20

Capital as a factor of production is …………………. in nature

Answer 20

durable

Question 21

Capital makes the system of …………………….. more refined

Answer 21

Division of Labour

Question 22

All capital can be considered as wealth but all wealth cannot be considered as capital

Answer 22

ok

Question 22

All capital can be considered as wealth but all wealth cannot be considered as capital

Answer 22

ok

Question 23

Capital is a ………………. concept whereas income is a …………… concept

Answer 23

stock, flow

Question 24

Inflation leads to ………………..

Answer 24

forced savings

Question 25

…………….. is the very first step in the formation of capital

Answer 25

creation of savings