Question

Which of the following economic systems directly preceded the emergence of capitalism in England?

	A.	Central planning
	B.	Feudalism
	C.	Slavery
	D.	Communal equality

The amount of output allocated towards the consumption of producers at their customary standard of living, plus the surplus product, is referred to as:

	A.	Household product.
	B.	Necessary product.
	C.	Total product.
	D.	Net product.

The amount of output required for consumption by producers at their customary standard of living, plus the amount required to replace capital depreciation and material inputs, is referred to as:

	A.	Total product.
	B.	Surplus product.
	C.	Necessary product.
	D.	Net product.

Answer 1

Feudalism directly preceded the emergence of capitalism in England. Therefore, option (B) is correct here.

The customary output allocated by the producers for their own need of consumption is never considered for selling. Therefore, the amount produced by the producers for the needs of the customary standard of living and the surplus is considered as the total product. Therefore, option (C) is correct here.

The amount of output required for the consumption by producers at their customary standard of living plus the amount required to replace capital depreciation and material inputs is referred to as net product. The net product is the total product minus the depreciation. Therefore, option (D) is correct here.