I.Choose the correct answer:-
1. Economics is asocial science
2. There are 4factors of production.
3. Labour cannot beseparated from labourer.
4. In generalcapital means money.
5. In organizerwill always make innovations.
6. The reward paidto capital is interest.
7. Investment ineducation is called human capital.
8. The reward paidto labour as a factor production is wages.
9. In united statesmore than 80% of labour force is tertiary workers.
10. Agriculture isclassified under primary sector.
II.Fill in the blanks:-
1.Production meanscreation of utility.
2.Utility meanswants satisfying power.
3.Land and labourare called original factor.
4. Capital andorganization are called Derived factors.
5.Land is a freegift of nature.
6.The concept ofdivision of labour was introduced by Adam Smith.
7.An enquiry intothe nature and causes of wealth of nations was written by Adam Smith.
III.Matchthe following:-
1. Land — bearsrisk
2. Banking service— rent
3. Organizer — buildings
4. Labour — tertiarysector
5. Physical capital— perishable.
IV.Answer in brief:-
1. State LionelRobbins definition of economics.
v LionelRobbins has defined economics as follows economics is the science which studieshuman behavior as a relationship between ends and scars means which havealternative uses.
2.What are the three sectors of the economy?
Different sectors:
1.Primary sector (raw materials)
2.Secondary sectors (manufacturing)
3.Feriary sector (services)
3.What is meant by Divisions of labour?
Divisions of labourmeans dividing the process of productions into several component processes andassigning each component in the hands of a labour or a set of labourers who areor specialists in that particular process.
4.What are forms of capital?
1.Physical capital:
Investment on allmanmade physical asserts life buildings and machines are called physicalcapital.
2.Money capital:
Investment made inthe form of many or monetary instrument is called money capital.
3.Human capital:
Investment ineducation, training, healthcare etc., is called human capital.
5.List out the factors of productions and their respective rewards.
Land
Labour
Capital
Organization