QBCh05Engoutput final.docx
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QBCh05Engoutput final.docx
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QBCh05Engoutputfinal
MultipleChoiceQuestions
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|EM15001|!
|
WhichofthefollowingisNOTclassifiedas“capital”ineconomics?
A.freshair
B.machine
C.solarenergycollected
D.reclaimedland
##
A
Capitalistheman-maderesourceusedinproduction.Sincefreshairhasnotgonethroughanyman-madeprocess,itisnotclassifiedas“capital”.
##
|!
|EM15002|!
|
Whichofthefollowingisclassifiedas“capital”ineconomics?
A.freshairinthecountrypark
B.skillsofthelabour
C.depreciatedmachinewhichisnolongerused
D.sandinadesert
##
B
Capitalistheman-maderesourceusedinproduction.Thelabourusetheirskillsintheproductionprocess.Sinceskillsarelearned,i.e.,man-made,theyareregardedas“capital”.
##
|!
|EM15003|!
|
WhichofthefollowingisNOTclassifiedas“capital”?
A.fishcaughtfromthesea
B.knowledge
C.vegetablesoldinsupermarket
D.moneyusedbyastudenttobuyacake
##
D
Capitalistheman-maderesourceusedinproduction.Moneyusedbyastudenttobuyacakeisforpersonalconsumption,butisnotusedinproduction.Therefore,itisnotclassifiedas“capital”.
##
|!
|EM15004|!
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Whichofthefollowingstatementsabout“capital”is/areCORRECT?
(1)Theuseofcapitalinvolvesopportunitycost.
(2)Theproductionofcapitalinvolvesopportunitycost.
(3)Acomputerusedinanofficeisacapitalgood.
A.
(1)only
B.(3)only
C.
(1)and
(2)only
D.
(1),
(2)and(3)
##
D
For
(1),sincecapitalcanhavealternativeusesinproduction,usingcapitalinaparticularwayincursopportunitycost.
For
(2),capitalistheman-maderesourceusedinproductionandhasgonethroughman-madeprocess.Therefore,theproductionofcapitalinvolvesopportunitycost.
For(3),capitalgoodsaregoodsusedinproductionprocesstoproduceothergoodsandservices.Acomputerusedinanofficeistheman-maderesourceusedinproduction.Therefore,acomputerusedinanofficeisacapitalgood.
##
|!
|EM15005|!
|
Whichofthefollowingstatementsabout“capital”isINCORRECT?
A.Capitalisaneconomicgood.
B.Theuseofcapitalcanenhancetheproductivityofotherfactorsofproduction.
C.Theproductionofcapitalmaynotinvolveopportunitycost.
D.Capitalformationincreasestheproductivecapacityofaneconomy.
##
C
Sincecapitalhasgonethroughman-madeprocesses,theproductionofcapitalmustinvolveopportunitycost.
##
|!
|EM15006|!
|
Whichofthefollowingis/areclassifiedas“capital”forfarming?
(1)rainfall
(2)sunlight
(3)soilwithchemicalfertilisers
(4)atractor
A.
(1)only
B.(3)and(4)only
C.
(2),(3)and(4)only
D.
(1),
(2),(3)and(4)
##
B
(3)and(4)aretheman-maderesourcesusedintheproduction.Therefore,theyareclassifiedas“capital”forfarming.
(1)and
(2)areincorrect.Theyarenaturalresourcesthathavenotgonethroughanyman-madeprocess,sotheyare“land”forfarming.
##
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|EM15007|!
|
Whichofthefollowingcanbeclassifiedas“capital”atauniversity?
(1)theswimmingpool
(2)booksinthelibrary
(3)professors
(4)chairsinthecanteen
A.(3)only
B.
(1)and
(2)only
C.
(1),
(2)and(4)only
D.
(1),
(2),(3)and(4)
##
C
Capitalistheman-maderesourceusedinproduction.Swimmingpool,booksinthelibraryandchairsinthecanteenaretheman-maderesourcesusedinprovidingeducationalservicestothestudentsattheuniversity.Therefore,theyareclassifiedas“capital”.
(3)isincorrect.Professorsarethehumaneffortusedintheproductionprocess(teaching),sotheyarelabour,notcapital.
##
|!
|EM15008|!
|
Whichofthefollowingisanexampleof“capitalformation”?
A.useofmachineintheproductionprocess
B.constructionoftunnels
C.purchaseofanewcomputer
D.depreciationofmachine
##
B
Capitalformationreferstotheproductionofcapitalgoods.Theconstructionoftunnelsleadstoanincreaseincapitalgoods.Itisanexampleofcapitalformation.
##
|!
|EM15009|!
|
Whichofthefollowingstatementsabout“capitalconsumption”is/areINCORRECT?
(1)Capitalconsumptionincreasestheproductivecapacityofaneconomy.
(2)Depreciationofequipmentisanexampleofcapitalconsumption.
(3)Capitalconsumptionreferstoareductioninstockofcapitalintheprocessofproduction.
A.
(1)only
B.
(1)and
(2)only
C.
(2)and(3)only
D.
(1),
(2)and(3)
##
A
Capitalconsumptionreferstoareductioninstockofcapitalgoodsresultingfromwear-and-tearandobsolescence.Capitalconsumptiondecreasestheproductivecapacityofaneconomyinsteadofincreasingitsproductivecapacity.
##
|!
|EM15010|!
|
Whichofthefollowingstatementsabout“capitalaccumulation”isINCORRECT?
A.Capitalaccumulationisapossiblesourceofeconomicgrowthinacountry.
B.Capitalaccumulationoccurswhenthecapitalformationisfasterthancapitalconsumption.
C.Decreaseininterestrateforsavingsinbankdepositsisabeneficialfactorforcapitalaccumulation.
D.Ifotherfactorsremainconstant,theproductivecapacityofaneconomywillincreasebecauseofthecapitalaccumulation.
##
C
Capitalaccumulationreferstothenetincreaseinstockofcapitalgoods.Itoccurswhencapitalformationisfasterthancapitalconsumption.Whentheinterestrateforsavingsdecreases,theopportunitycostofpresentconsumptiondecreases.Thisdiscouragessavings.Lesssavingswillbechannelledintoinvestment,stockofcapitalwilldecrease.Therefore,decreaseintheinterestrateforsavingswillreducetheamountofcapitalaccumulation,whichisnotabeneficialfactorforcapitalaccumulation.
##
|!
|EM15011|!
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Whenpeopledecidedtosavemore,ithelpstoincreasethe_______________,but_____________willdecrease.
A.capitalconsumption…presentconsumption
B.capitalaccumulation…presentconsumption
C.capitalconsumption…futureconsumption
D.capitalaccumulation…futureconsumption
##
B
Whenpeoplesavemore,moresavingsarechannelledintoinvestment,capitalaccumulationwillincrease.Theygiveuppresentconsumptionforfutureconsumption,thus,theirpresentconsumptionwilldecreasebutfutureconsumptionwillincrease.
##
|!
|EM15012|!
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Whentheinterestrateofsavingsdecreases,theopportunitycostofpresentconsumptionwill__________,theamountofsavingswill___________.
A.decrease…increase
B.increase…decrease
C.decrease…decrease
D.increase…increase
##
C
Thealternativeofpresentconsumptionissavings.Whentheinterestrateofsavingsdecreases,theopportunitycostofpresentconsumptionwilldecrease.Itwilldiscouragesavings,theamountofsavingswillthereforedecrease.
##
|!
|EM15013|!
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Ineconomics,capitalcanbeclassifiedas__________goodsand____________goods.
A.consumer…economic
B.consumer…free
C.producer…economic
D.producer…free
##
C
Capitalistheman-maderesourceusedinproduction,butnotforpersonalconsumption.So,capitalisclassifiedasproducergoods.
Capitalisclassifiedaseconomicgoodsbecausemoreofitispreferredsincethequantityavailableisnotsufficienttosatisfyallhumanwants.Also,theproductionofitinvolvestheuseofscarceresources.
##
|!
|EM15014|!
|
Whichofthefollowingisclassifiedas“land”ineconomics?
A.fishsoldinthesupermarket
B.crudeoilbeneaththesea
C.sunlightcollectedbythesolarpanel
D.treesplantedbesidethehighway
##
B
Landreferstoallnaturalresourcesusedinproduction.Itisagiftofnature.Sincethecrudeoilbeneaththeseahasnotgonethroughanyman-madeprocess,itisclassifiedas“land”ineconomics.
##
|!
|EM15015|!
|
Whichofthefollowingstatementsabout“land”isCORRECT?
A.Useoflandinvolvesnoopportunitycost.
B.Supplyoflandmustbefixed.
C.Supplyoflandcanbeincreasedbyhumaneffort.
D.Productionoflandinvolvesnoopportunitycost.
##
D
Landreferstoallnaturalresourcesusedinproduction.Itisagiftofnature.Productionoflandthereforedoesnotinvolveanycost.
##
|!
|EM15016|!
|
Whichofthefollowingstatementsabout“land”and“capital”areTRUE?
(1)Landcannotmovebutcapitalcan.
(2)Capitalisaneconomicgoodwhilelandisafreegood.
(3)Landcannotbeincreasedbyhumaneffortbutcapitalcan.
(4)Landisagiftofnaturebutcapitalisnot.
A.
(1)and
(2)only
B.(3)and(4)only
C.
(2),(3)and(4)only
D.
(1),
(2),(3)and(4)
##
B
(3)and(4)arecorrect.Landreferstoallnaturalresourcesusedinproduction.Itisagiftofnature.Itthereforecannotbeincreasedbyhumaneffort.Capitalistheman-maderesourceusedinproduction.Itthereforecanbeincreasedbyhumaneffort.
(1)isincorrect.Landitselfcanmove,butitcannotbemovedbyhumaneffort.
(2)isincorrect.Landmaynotbeafreegoodassomeofthemarescarce.
##
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|EM15017|!
|
Ineconomics,abuildingisclassifiedas__________andthemoneyreceivedfromrentingouttheflatsinthebuildingiscalled__________.
A.land…rent
B.land…interest
C.capital…rent
D.capital…interest
##
D
Abuildingisaman-maderesourceusedinproductionandthereforeisclassifiedascapital.Themoneyreceivedfromrentingouttheflatsinthebuildingisthereturnoncapitalwhichiscalledinterest.
OptionsAandBareincorrect.Landreferstoallnaturalresourcesusedinproduction.Itisagiftofnature.Sinceabuildinghasgonethroughman-madeprocess,soitisnotland.
##
|!
|EM15018|!
|
Whichofthefollowingisanexampleoflabour?
A.anownerofastore
B.ashareholderofalistedcompany
C.anaccountclerk
D.astudent
##
C
Labouristhehumaneffort,bothmentalandphysical,usedinproduction.Anaccountclerkprovideshumaneffortusedintheproduction,heisthereforeclassifiedaslabour.
OptionsAandBareinc
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