Advertisements
Advertisements
प्रश्न
All capital is wealth but all wealth is not capital. Explain why all wealth is not capital.
संक्षेप में उत्तर
उत्तर
- Capital denotes "real capital," while wealth is defined as all economic commodities that are scarce and have a price. This is because wealth that is utilized for consumption is not considered capital.
- Consequently, not all wealth can be considered capital. A car, for instance, is affluence, but it is not capital.
- Wealth refers to all economic goods that are scarce and command some price. Capital refers to real capital, e.g. machines, factories, buildings, etc., which is further used in the production of other goods and services.
shaalaa.com
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
APPEARS IN
संबंधित प्रश्न
Write short notes Types of capital.
State whether the following statement is True or False :
Capital is a natural factor of production .
Answer in brief.
State the features of Capital.
______ is a cause behind low rate of capital formation in India.
Capital formation cannot occur unless there is ______.
If ______ is used again and again, its value depreciates gradually.
Mention two functions of capital.
Explain two ways in which labour is different from capital.
Distinguish between fixed capital and working capital.
Differentiate between an entrepreneur and labourer on the basis of the nature of risk involved.
