Question

From where does a man get the ability to purchase goods?

• A. From capital
• B. From income
• C. From land
• D. None of these

Hint:

Income is the primary factor that enables individuals to purchase goods, either from wages or investments.

Answer 1

The Correct Option is B

Step 1: Understanding purchasing power.
The ability to purchase goods is derived from income. Income refers to the money received, typically on a regular basis, for work or through investments, which allows a person to buy goods and services.

Step 2: Analyzing the options.
(A) From capital: While capital can help generate income, it does not directly provide the ability to purchase goods unless it is used to produce income.
(B) From income: Correct. Income is the primary source through which people gain the ability to purchase goods.
(C) From land: Land may be a source of wealth, but it does not directly provide the purchasing power unless it generates income.
(D) None of these: This is incorrect, as the correct answer is (B) From income.

Step 3: Conclusion.
The correct answer is (B) From income, as income enables individuals to purchase goods and services.