MCQ practice · SSC Bangladesh and Global Studies Board questions · Chapter 10: The National Resources and the Economic Systems
What is Mr Jamil's expenditure of eight lakh taka called in economics?
Think it through first, then pick an option.
- a investment
- b land
- c capital
- d consumption expenditure
Answer and explanation
Correct answer: a investment
Money engaged in production, adding new machinery to existing capital, is investment.
Why the other options are wrong
- b land: Land is a natural resource; buying machines is not land.
- c capital: The machines bought are capital; but spending money this way is called investment.
- d consumption expenditure: Consumption expenditure is to meet needs; this is for production.
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