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Question
Differentiate the following with examples:
Money capital and sunk capital
Distinguish Between
Solution
| Money Capital | Sunk Capital | |
| 1. | Money capital is used to describe capital in terms of money. Money itself is not a means of production which can be used for buying capital goods. | It is that type of capital which can only be put to a single use. It always remains in the place where it is fixed. |
| 2. | For example: machines, and raw materials. | For example: A printing machine can only be put for printing and nothing else. |
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Chapter 1: Factors of Production - Exercise [Page 32]
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