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Write Short Note on the Following: Types of Capital - Economics

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प्रश्न

Write short note on the following:

Types of capital

टीपा लिहा

उत्तर

Capital can be classified into the following categories:

i. On the basis of ownership:

a. Private capital - It is owned by private individuals or institutes.
b. Public capital - It is owned by the government or a society.

ii. On the basis of mobility:

a. Sunk capital - It is the capital which is used only for a specific purpose. For instance, washing machines, which are used only for the specific purpose of washing clothes.
b. Floating capital - It is the capital which is used for a variety of purposes. For example - electricity.

iii. On the basis of nature:

a. Real capital - It is the capital which is used in the production of other goods. For example, capital assets like buildings, machinery, raw materials etc.
b. Money capital - It is the capital which is in the form of money. This capital is used to purchase real capital.

iv. On the basis of durability:

a. Fixed capital - It refers to the capital which is used in the process of production repeatedly.
b. Working capital - It refers to the capital which is used in the process of production only once.
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पाठ 7: Factors of Production - Exercise 3 [पृष्ठ ६१]

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मायकल वाझ Economics [English] 12 Standard HSC
पाठ 7 Factors of Production
Exercise 3 | Q 2.2 | पृष्ठ ६१

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संबंधित प्रश्‍न

Explain any two characteristics of capital.


Distinguish between fixed capital and floating capital.


What is meant by capital formation


Explain three causes of low capital formation in India.


Define capital.


Differentiate the following with examples:

Real capital and debt 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 Any FOUR of the following :   

 Fixed capital and Fluctuating capital.  


Answer in brief.

State the features of Capital. 

 


Distinguish between Fixed capital and Circulating capital quoting suitable examples. 


What is capital?


Capital means ______.


______ is a passive factor of production.


What is the meaning of capital formation?


Identify the produced means of production factor from the picture.


If you make investments in insurances or mutual funds, then it will be called as ______ type of capital.


Analyse the images below and identify the factors of production and explain any one characteristic of the same.


Justify the following in brief:

Capital is an immobile factor in the short run.


______ is a produced means of production.


______ is a durable producer's good.


______ is a process of adding to the stock of human capital.


______ is a cause behind low rate of capital formation in India.


______ is one of the three stages of capital formation.


Capital as a factor of production is ______ in nature.


______ is subject to depreciation.


Creation of savings is the ______ stage of formation.


If ______ is used again and again, its value depreciates gradually.


Mention two functions of capital.


Identify the form of capital given below. Give a reason for your answer.

Steel


Explain two ways in which labour is different from capital.


Define capital formation.


State one important function of capital.


Distinguish between fixed capital and working capital.


Define the term 'floating capital'.


Give an example of floating capital.


Distinguish between real capital and money capital.


Which of the two is more important in economic growth (higher impact on national income) real capital and money capital?


Explain how capital is a produced means of production.


Differentiate between an entrepreneur and labourer on the basis of the nature of risk involved.


Classify the following capital goods:

Machines


Classify the following capital goods:

Cotton yarn


Classify the following capital goods:

Bridge


Read the given statements carefully and select the correct option that follow:

  1. Land is an active factor of production
  2. Capital is produced means of production

What is considered as capital in economics?


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