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प्रश्न
Explain three important stages of capital formation.
Briefly discuss the process of capital formation.
What are the three different stages of capital formation?
उत्तर
Three important stages of capital formation:
- Generation of saving: Savings provide necessary resources for the production of capital goods. So the first stage of capital formation is the generation of savings. Savings by people depend on
- ability to save
- willingness to save and
- opportunity to save.
- A mobilisation of savings: Although with a high level of income, if a person holds savings in the form of cash instead of depositing in the bank, then the savings cannot be mobilised for investment. Hence, the savings must be mobilised from the savers. The capital markets, as well as financial and other institutions, perform these tasks.
- Investment of savings: The mobilised savings must be actually used by producers for investment. Money kept by the people in the banks must be lent out by the banks to producers for business investment such as the purchase of machinery, raw materials, etc.
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संबंधित प्रश्न
Explain any two characteristics of capital.
Capital depreciates. Explain
Differentiate the following with examples:
Real capital and debt capital
Differentiate the following with examples:
Money capital and sunk capital
Distinguish between sunk capital and floating capital
State whether the following statement is True or False :
Capital is a natural factor of production .
Fill in the blank with proper alternatives given in the bracket:
Produced means of production is known as ______________ .
Distinguish between the following:
Fixed capital and variable capital
Fill in the blank with appropriate alternative given below
Capital is a __________ factor of production.
(i) Define capital formation.
(ii) Briefly discuss the process of capital formation.
______ is the man made physical goods used to produce other goods and services.
Write the forms of capital.
Identify the produced means of production factor from the picture.
______ is a durable producer's good.
______ is one of the three stages of capital formation.
Capital earns ______ as a factor income.
Is a motor car owned by a doctor circulating capital or fixed capital? Give two reasons to support your answer.
Identify the form of capital given below. Give a reason for your answer.
Steel
Explain two factors on which the capital formation of a country depends.
Distinguish between stocks of capital goods and capital formation using a suitable example.
Define capital formation.
Differentiate between:
Capital and income
Give an example of 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:
Bridge
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
What is considered as capital in economics?
