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प्रश्न
Mention two functions of capital.
What is the significance of capital in promoting economic growth?
Discuss the importance of capital in the modern system of production.
Explain three important functions of capital.
उत्तर १
- It increases the productivity of land and labour.
- Capital increases economic growth and employment opportunities, particularly in countries where labour is plentiful. Capital is necessary to employ more workers.
- Capital is used to provide the necessary tools and implements to the workers for productivity purposes. It is also used to extract goods from nature.
- Without capital, there can be no production. Capital makes the use of advanced modem machines in production possible. Moreover, no technological progress is possible without capital.
उत्तर २
- It increases the productivity of land and capital.
- It increases employment opportunities particularly in those countries where labour is in plenty.
Notes
Students should refer to the answers according to their questions.
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संबंधित प्रश्न
Explain any two characteristics of capital.
What is meant by capital formation
Define capital.
State whether the following statement is True or False :
Capital is a natural factor of production .
Distinguish between Any FOUR of the following :
Fixed capital and Fluctuating capital.
Answer the following question.
What are the features of capital?
Write short note on the following:
Types of capital
Fill in the blank with appropriate alternative given below
Capital is a __________ factor of production.
______ is the man made physical goods used to produce other goods and services.
Write the forms of capital.
What is capital?
What is the meaning of capital formation?
Explain any three significances of capital formation in an economy.
If you make investments in insurances or mutual funds, then it will be called as ______ type of capital.
______ is a produced means of production.
______ are examples of physical capital.
Capital is a ______ means of production.
Creation of savings is the ______ stage of formation.
Distinguish between sunk and floating capital. Give an example of each.
Which form of capital, money capital or real capital, has a greater impact on national output?
Distinguish between stocks of capital goods and capital formation using a suitable example.
Explain two ways in which labour is different from capital.
Differentiate between:
Capital and wealth
Define the term 'floating capital'.
Which of the two is more important in economic growth (higher impact on national income) real capital and money capital?
Classify the following capital goods:
Cotton yarn
Read the given statements carefully and select the correct option that follow:
- Land is an active factor of production
- Capital is produced means of production
Why is capital considered an important factor of production in the modern world? Give two reasons in support of your answer.