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Define Or Explain the Following Concept: Capital - Economics

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Question

Define or explain the following concept:

Capital

Short Note

Solution

Capital includes money invested in the business, machinery and tools. A moneylender or a capital owner receives interest on the amount of capital contributed by him in the production. It is regarded as an artificial factor of production. This is because it cannot produce goods on its own.

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Chapter 7: Factors of Production - Exercise 2 [Page 60]

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Micheal Vaz Economics [English] 12 Standard HSC
Chapter 7 Factors of Production
Exercise 2 | Q 1.5 | Page 60

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