The consumption of wheat by each farmer's family is 40. Wheat grown (production) through out the year is 100. The whole of surplus wheat this year is used as capital for next year's production. What would be the surplus and capital for the next year ?
A) Surplus-60, Capital 120
B) Surplus-40, Capital - 60
C) Surplus-140, Capital - 140
D) Surplus-60, Capital - 40
Answers
Answer:
c)Surplus-140, capital-140
so respect farmers
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Q1. Let us take three farmers. Each has grown wheat on his field though the production is different (see Column 2). The consumption of wheat by each farmer family is the same (Column 3). me whole of surplus wheat this year is used as capital for next year's production. Also suppose, production is twice the capital used in production. Complete the table by finding the surplus and capital for next year.
Production Consumption
year 1 : 100 40
year 2 :120 40
year 3 :? 40
Concept:
Surplus: it is the surplus of commodities produced over what is required for a working community to maintain its current quality of living.
It is calculated as follows,
Surplus = Production - Consumption
Capital : A factory and its equipment, intellectual property like patents, or the financial assets of a company or a person are all examples of things that provide value or advantage to their owner and fall under the broad definition of capital.
Given:
- Production Consumption
year 1 : 100 40
year 2 :120 40
year 3 :? 40
- whole of surplus wheat this year is used as capital for next year's production
Find: surplus and capital for next year
Solution:
year production consumption surplus capital
1 100 40 60 60
2 120 40 80 80
3 160 40 120 120
Hence we can say that, the surplus and capital is 60,80 and 120 for year 1, 2 and 3 respectively.
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