Question

10. Which of the following best illustrates the physical capital of a survivor stranded on an island?
A. the fresh fruit and fish on and around the island
B. the fishing poles and lures that she has produced
C. the physical workout that gets when she swims and uses her hands to catch fish
D. an idea for a better fishing lure that she will develop when she finds the right materials.
E. her previous training in a survival course

12. Which of the following statements is (are) correct?
(x) Technological knowledge is a determinant of productivity and it is defined as the available information on how to produce things.
(y) A technological advance in production will always require a greater use of natural resources.
(z) Human capital is the knowledge and skills that workers acquire through education, training, and experience and the production of human capital typically requires inputs in the form of teachers and on-the-job-training
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

13. Which of the lists contains, in this order: natural resources, physical capital, and human capital?
A. For a railroad: fuel, railroad tracks, training for the railroad engineer.
B. For a restaurant: the produce used to make salad, the company cafeteria that provides meals to the workers, the freezers where the steaks are kept.
C. For a furniture company: the wood to make tables and chairs, the saws to cut the wood, the things the workers learned at furniture making school.
D. All of the above are correct.
E. A and C, only

Answer 1

Answer 10 : (B). the fishing poles and lures that she has produced

Because fishing poles and lures are the physical capital i.e they are already manufactured and are tangible assets to be used by the survivor and these assets derives output which in this case is catching a fish .

Answer 12 : (C). (x) and (z) only

Technological Advance can affect environment positively too , by developing ways of recycling of resources etc. So option y does not hold true in all the cases

Answer 13 :(E) A and C only