(iii) On the job training. the cost of production of capital goods will fall. 111. Download. 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 Practice Multiple Choice Chapter 1—Ten Principles of Economics. Incurred to acquire fixed assets. In _____, machines and equipments are arranged in the order or sequence in which they are to be used for manufacturing the product A. Which of the following best describes Debt Service Coverage Ratio? In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. It is not necessary for the company to call for the entire amount on … Expenditure c. Liabilities d. Assets 17. TEST 1) If a person’s required return decreases for an increase in risk, that person is said to be risk-seeking. Whereas capital expenditure includes all capital transactions. In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. Consider the following statements and identify the right ones. Which one of the following is NOT true about Capital Expenditure? A. If it creates an asset or reduces a liability, it is categorised as capital expenditure. The protection of proprietary information of commercial value C. i. risk-adverse. Cash payments are 60% in the month of purchase and 40% in the following month. Capital Expenditure. 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. Capital account is classified into 3 parts in India- private, banking and official capital. A. An individual who starts, creates and manages a new business can be called _____. A manager C. A professional D. An entrepreneur ANSWER: D 2. ; It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future. 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 … Tally package is developed by ... a. A. Way: By minimising the wastage of diesel. 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. The aggregate expenditure determines the total amount that firms and households plan to spend on goods and services at each level of income. (ii) Expenditure on health. b. capital expenditure budget. This classification is also known as functional classification. 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. 5. Income inelastic B. Instable C. Interest elastic D. Income elastic 86. Ans. 13.2%. 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 7.2%. Autonomous investment is A. ANSWER: D 29. 6%. For achieving economic stability, the objective of low interest cost will have to be sacrificed ADVERTISEMENTS: National Income and Related Aggregates! 2. 156. 7) Borrowings:When government revenue is not sufficient to meet the public expenditure government borrows either from internal or external sources. 8) Asset Y has a beta of 1.2. C. Process Layout. 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. Product Layout. First purchase 35 units @ Rs. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. thee will be a rise in the prospective return from capital. (v) Migration and expenditure … Land, Labour, Capital and Entrepreneurship are the four factors of production and rent, wages, interest and profits are the respective […] Qno.9 Consider the following: Beginning inventory 10 units @ Rs. It is the amount of export earnings needed to meet a country's annual external debt. (i) Expenditure on education. Fixed capital. 10 per unit. Creates future benefits. The risk-free rate of return is 6%, while the return on the market portfolio of assets is 12%. The asset’s market risk premium is . 10%. Incurred to increase the economic life of existing fixed assets. d. budgeted balance sheet. (iv) Study programmes for adults. Current capital. Value Added is the excess of value of output over that of intermediate consumption. capital asset pricing model . Solution: Issued capital is taken up by the general public. 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 It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government. D. Venture capital. In which workers become more knowledgeable about the best ay to accomplish a task as they do the task. Reason: This expenditure creates an asset for the railway and government. 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 is the basis of classification between revenue expenditure and capital expenditure. wL0FCDQ:UHTgncn. 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. If it creates an asset or reduces a liability, it is categorised as capital expenditure. What are factor incomes? the cost of production of capital goods will fall. A. ... Capital expenditure is incurred on _____. 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. Lark Corp.’s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. HRM multiple choice questions and answers on HRM MCQ questions quiz on HRM objectives questions. there will be an increased production of capital goods. On the job experience creates "learning by doing". 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 leader B. (a) Infrastructure (b) Highways (c) Irrigation projects (d) All the above. 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). The expenditure of the government has increased due to the emergence of welfare state. These capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment etc. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. This amount was, as a result not allowed as deduction. It is that part of subscribed capital, which is called by the company to pay on shares allotted. Introduction. ADVERTISEMENTS: Q.2. Practice Multiple Choice Chapter 1—Ten Principles of Economics 29. _____scheme creates team spirit which in turn leads to high output a) Time rate b) Piece rate c) Group bonus 191. 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. Such capital can be offered to the public at a later date. Factory Layout. C. Seed capital. risk-indifferent. Human capital formation is the process of adding to the stock of human capital over a period of time. Gordon model. mYxvcR1:40hGGyz. Government Budget and the Economy – CBSE Notes for Class 12 Macro Economics. Hence, all the options are correct. the people will save more and interest rate will all. But there are much disagreement among various B. c. budgeted income statement. Q.1. 84. Who postulated the law Supply creates its own demand (A) Keynes (B) J B say (C) Marshall (D) Pigou 85. This creates a gulf between the revenue and expenditure. Income b. Answer: True. there will be an increased production of capital goods. Trademarks relate to _____. Capital expenditure does not reduce the profit of the concern. Practice and knowledge acquired through experience B. thee will be a rise in the prospective return from capital. B. It is the ratio of a country's import expenditure … Meaning: Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. Ans. Reduce the profit of the concern . Equilibrium exchange rate occurs when supply of and demand for foreign exchange are equal to each other. Multiple Choice Questions. B. Comparison to GDP. TALLY 9.0 MULTIPLE CHOICE QUESTIONS 1. 11 per unit Answer. Q.2 Define Tax. Not profitable B. 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. Question 8. Investments in shares and loans and advances granted by the central government are part of this. Sources of human capital formation. Question 2. Expenditure made on the development of a railway line is a capital expenditure. A monopolist is a price (a) Acceptor (b) Taker (c) Giver (d) Maker. 1. A very senior citizen shall be that individual for purpose of Income Tax whose age is More than following– Borrowing is income of the government which creates liability because the government has to repay the borrowings with interest. Define the concept of value added. the people will save more and interest rate will all. D. 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Of the following statements and identify the right ones and loans and advances granted by central.

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