| 1 |
To the economist, investment refers to |
- A. sale of real estate
- B. creation of new capital
- C. purchase of a prize bond
- D. decrease in inventories
|
| 2 |
Net investment equals Gross investment MINUS |
- A. fixed capital
- B. capital depreciation
- C. capital appreciation
- D. capital formation
|
| 3 |
Qd = 50 - 5P people will demand 50 when price of the product is: |
- A. Very high
- B. Very low
- C. Zero
- D. Unity
|
| 4 |
Which is <i>NOT </i>a cause of slow capital formation in Pakistan |
- A. poverty
- B. illiteracy
- C. bad governance
- D. low rate of taxes
|
| 5 |
Which of the following is capital |
- A. toy of a child
- B. plough of the farmer
- C. calculator of the student
- D. novel book in the library
|
| 6 |
Capital formation lakes place when |
- A. people save a part of their incomes
- B. saved amount is invested
- C. investors expect good return
- D. all of the three
|
| 7 |
Productivity of capital depends upon |
- A. quality of labour
- B. quality of raw materials
- C. quality of management
- D. all of the above
|
| 8 |
The government constructed a new water reservoir for the purpose of irrigation; this might be taken as |
- A. increase in supply of capital
- B. increase in supply of land
- C. increase in supply of land and supply of capital
- D. increase in natural resources
|
| 9 |
How many functions of capital |
|
| 10 |
Consists of all kinds of wealth, other than free gifts of nature, which yield income are called |
- A. Capital
- B. Productivity of capital
- C. Both a and b
- D. None of these
|
