ADVERTISEMENTS: National Income and Related Aggregates! Reduce the profit of the concern . It is the amount of export earnings needed to meet a country's annual external debt. (a) Infrastructure (b) Highways (c) Irrigation projects (d) All the above. Comparison to GDP. Answer: True. 29. D. Combined Layout. mYxvcR1:40hGGyz. First purchase 35 units @ Rs. Hence, all the options are correct. B. Such capital can be offered to the public at a later date. 84. Who postulated the law Supply creates its own demand (A) Keynes (B) J B say (C) Marshall (D) Pigou 85. The term working capital is commonly used for the capital required for day-to-day working in a business concern, such as for purchasing raw material, for meeting day-to-day expenditure on salaries, wages, rents rates, advertising etc. risk-indifferent. In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. Land, Labour, Capital and Entrepreneurship are the four factors of production and rent, wages, interest and profits are the respective […] MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is A. A very senior citizen shall be that individual for purpose of Income Tax whose age is More than following– This amount was, as a result not allowed as deduction. This classification is also known as functional classification. A monopolist is a price (a) Acceptor (b) Taker (c) Giver (d) Maker. Product Layout. 2. This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and their implications are studied. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. In which workers become more knowledgeable about the best ay to accomplish a task as they do the task. ... Capital expenditure is incurred on _____. the people will save more and interest rate will all. Whereas capital expenditure includes all capital transactions. C. Process Layout. A. Multiple Choice Questions. Q.1. The expenditure of the government has increased due to the emergence of welfare state. Borrowing is income of the government which creates liability because the government has to repay the borrowings with interest. 41) When a commercial bank creates credit, its immediate effect is that it raises (A) The exchange rate (B) The interest rate (C) The money supply Meaning: Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. ANSWER: D 29. Incurred to acquire fixed assets. capital asset pricing model . These capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment etc. D. Venture capital. A leader B. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. Consider the following statements and identify the right ones. Ans. Sources of human capital formation. Reason: This expenditure creates an asset for the railway and government. 6%. Qno.9 Consider the following: Beginning inventory 10 units @ Rs. (v) Migration and expenditure … The AO held that lease of land for 90 years conferred a benefit of enduring nature to the assessee, particularly in the light of the definition of the expression “immovable property” furnished in section 269UA(d)(i) and, consequently, it was in the nature of capital expenditure. risk-adverse. The risk-free rate of return is 6%, while the return on the market portfolio of assets is 12%. the people will save more and interest rate will all. b. capital expenditure budget. HRM multiple choice questions and answers on HRM MCQ questions quiz on HRM objectives questions. Introduction. Ans. _____scheme creates team spirit which in turn leads to high output a) Time rate b) Piece rate c) Group bonus 191. Lark Corp.’s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. A manager C. A professional D. An entrepreneur ANSWER: D 2. C. Seed capital. 11 per unit (iv) Study programmes for adults. B. TALLY 9.0 MULTIPLE CHOICE QUESTIONS 1. 7) Borrowings:When government revenue is not sufficient to meet the public expenditure government borrows either from internal or external sources. Note: As per CBSE guidelines, no marks will be given if reason to the answer is not explained. If it creates an asset or reduces a liability, it is categorised as capital expenditure. there will be an increased production of capital goods. d. budgeted balance sheet. ADVERTISEMENTS: Q.2. Capital account is classified into 3 parts in India- private, banking and official capital. Practice Multiple Choice Chapter 1—Ten Principles of Economics It is that part of subscribed capital, which is called by the company to pay on shares allotted. (ii) Expenditure on health. The aggregate expenditure is one of the methods that is used to calculate the total sum of all the economic activities in an economy, also known as the gross domestic product (GDP). Capital Expenditure. Trademarks relate to _____. Define the concept of value added. TEST 1) If a person’s required return decreases for an increase in risk, that person is said to be risk-seeking. ; It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future. Which of the following best describes Debt Service Coverage Ratio? Answer. A. Question 2. Expenditure c. Liabilities d. Assets 17. A. A double entry system of record of all economic transactions between the residents of a country and rest of the world is called balance of trade 10%. A. (i) Expenditure on education. The protection of proprietary information of commercial value C. Expenditure made on the development of a railway line is a capital expenditure. Group bonus is divided among the workers of the group in proportion to the _____by them a) Hours worked b) Rate per hour c) Basic wage earned 190. 1. Not profitable B. Factory Layout. Human capital formation is the process of adding to the stock of human capital over a period of time. MCQ Questions for Class 12 Economics Chapter 10 Determination of Income and Employment with Answers December 17, 2020 by Kishen Leave a Comment Determination of Income and Employment Class 12 MCQs Questions with Answers human capital, the accumulated skills and knowledge people possess comes from both formal education and training and from on the job experience. Equilibrium exchange rate occurs when supply of and demand for foreign exchange are equal to each other. TYBCOM SEM 5 Business Economics III - MCQ TYBCOM - SEM 5 - 2014 Exams Business Economics III Important MCQ list ... 3 State Trur or False: External debt creates more burden than internal debt. This is the basis of classification between revenue expenditure and capital expenditure. Answer: (d) Maker Explanation: A monopoly firm is a price maker or price setter because it is the sole producer of a product.This is in contrast to a competitive firm which is a price taker with zero market power. Which one of the following is NOT true about Capital Expenditure? In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. […] Incurred to increase the economic life of existing fixed assets. But there are much disagreement among various Q.2 Define Tax. Investments in shares and loans and advances granted by the central government are part of this. Way: By minimising the wastage of diesel. Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company. thee will be a rise in the prospective return from capital. B. On the job experience creates "learning by doing". 156. (iii) On the job training. Current capital. 13.2%. wL0FCDQ:UHTgncn. Expenditure incurred by a publisher for acquiring copyrights is a– (A) capital expenditure (B) revenue expenditure (C) deferred revenue expenditure (D) None of the above (Ans : A) 112. This creates a gulf between the revenue and expenditure. 111. the cost of production of capital goods will fall. What are factor incomes? An individual who starts, creates and manages a new business can be called _____. The entrepreneur was distinguished from capital provider in: a) Middle ages b) 17th century c) 18th century d) 19th and 20th century Answer: c … All Unit MCQ’s … Income inelastic B. Instable C. Interest elastic D. Income elastic 86. Practice and knowledge acquired through experience B. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Fixed capital. In _____, machines and equipments are arranged in the order or sequence in which they are to be used for manufacturing the product A. It is not necessary for the company to call for the entire amount on … Capital expenditure does not reduce the profit of the concern. Value Added is the excess of value of output over that of intermediate consumption. there will be an increased production of capital goods. Tally package is developed by ... a. It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government. The asset’s market risk premium is . 8) Asset Y has a beta of 1.2. Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. i. Income b. If it creates an asset or reduces a liability, it is categorised as capital expenditure. Practice Multiple Choice Chapter 1—Ten Principles of Economics. 7.2%. Download. Government Budget and the Economy – CBSE Notes for Class 12 Macro Economics. Revenue Expenditure and Capital Expenditure of India! 10 per unit. Solution: Issued capital is taken up by the general public. Gordon model. the cost of production of capital goods will fall. 5. Autonomous investment is A. c. budgeted income statement. thee will be a rise in the prospective return from capital. For achieving economic stability, the objective of low interest cost will have to be sacrificed The aggregate expenditure determines the total amount that firms and households plan to spend on goods and services at each level of income. Creates future benefits. Cash payments are 60% in the month of purchase and 40% in the following month. ANSWER: B 30. Question 8. Explain the canons of taxation. It is the ratio of a country's import expenditure … Class 12 Macro capital expenditure creates mcq and advances granted by the general public not as... 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