Advertisements
Advertisements
प्रश्न
Explain any two characteristics of capital.
Explain any five characteristics of capital as a factor of production.
Discuss any three characteristics of capital.
Mention two important characteristics of capital as a factor of production.
उत्तर १
The main characteristics of capital are as follows:
- Capital is man-made: It is created by man and is not a gift of nature. It is the mixed result of the past labour of workers on natural resources. Capital is created It is a produced means of production.
- Capital is durable: Capital goods such as machinery, plants and factory buildings are durable goods which might last for a few years, while others may last for decades.
- Capital is a Passive Factor of Production: Like land, capital is also a passive factor of production. It cannot produce anything by itself. It becomes effective only when it is used by labour.
- A Mobile Factor: Capital is the most mobile factor of production. It is easily transferable from one place to another and also from one occupation to another.
- Supply of Capital is Elastic: The supply of capital is elastic. It can be easily increased or decreased because it is man-made.
- Capital is Subject to Depreciation: A capital asset, while in use, loses its value due to wear and tear. Its money value becomes less and less with the passage of time. This fall in value is termed depreciation.
- Capital is the Result of Past Savings: Capital goods can be produced and increased in stock only after saving money and reinvesting it. Hence, capital can be rightly called the outcome of savings.
उत्तर २
- Capital is a produced means of production.
- Capital is a passive factor of production.
- Capital is a mobile factor. It can move from place to place and occupation to occupation.
- The supply of capital can be changed according to demand.
- Capital depreciates in value with its constant use.
Notes
Students should refer to the answer according to their questions.
APPEARS IN
संबंधित प्रश्न
Capital depreciates. Explain
Explain three causes of low capital formation in India.
Define capital.
Differentiate the following with examples:
Real capital and debt capital
Explain three important stages of capital formation.
Fill in the blank with proper alternatives given in the bracket:
Produced means of production is known as ______________ .
Answer the following question.
What are the features of capital?
(i) Define capital formation.
(ii) Briefly discuss the process of capital formation.
Capital means ______.
State whether the following statement is true or false. Give reason for your answer.
The capital like printing machines, tools when used in process of production are subject to depreciation.
______ is a process of adding to the stock of human capital.
______ is a cause behind low rate of capital formation in India.
Capital earns ______ as a factor income.
Capital as a factor of production is ______ in nature.
Using suitable examples, classify capital into fixed capital and circulating capital.
Distinguish between sunk and floating capital. Give an example of each.
Identify the form of capital given below. Give a reason for your answer.
Steel
Which form of capital, money capital or real capital, has a greater impact on national output?
Explain two ways in which labour is different from capital.
Define capital formation.
State one important function of capital.
Give an example of floating capital.
Differentiate between an entrepreneur and labourer on the basis of the nature of risk involved.
Classify the following capital goods:
Machines
Why is capital considered an important factor of production in the modern world? Give two reasons in support of your answer.
What is considered as capital in economics?
