Question

Which of the following statements are true or false: (a) Capital formation increases the capital of a country. (b) Growing vegetables in the kitchen garden is not a part of production. (c) A farmer producing wheat for self consumption is a part of production. (d) A teacher teaching in school is production. (e) A student using stationery is production. (f) Digging a well by the members of a family in their own field is a part of capital formation. (g) A truck transporting wheat from a village to the market in the nearby town is a part of production.

Answer 1

Answer:

a. true

b. false

c. true

d. true

e. false

f. true

g. true

Answer 2

Answer:

1. Capital formation increases the capital of a country. True
2. Growing vegetables in the kitchen garden is not a part of the production. False
3. A farmer producing wheat for self-consumption is a part of the production. True
4. A teacher teaching in school is production. True
5. A student using stationery is production. False
6. Digging a well by the members of a family in their field is a part of capital formation. True
7. A truck transporting wheat from a village to the market in the nearby town is a part of the production. False

Explanation:

1. Capital is money or asset owned by a company or a person or by the nation. Hence, capital development of an individual indicates the capital development of the nation as a whole.
2. The growth of knowledge, agriculture products or industrial products is synonymous with the production
3. Here the growth of food crops is indicated. Since food crop is also an agricultural product, hence it a production
4. The growth of knowledge is produced.
5. Buying a pencil and using it isn’t a part of a production
6. Drawing a well involves using the water from the well which is an asset. Hence it is a part of capital growth
7. Moving of the crop is just a part of resource relocation, not production.