Advertisements
Advertisements
Question
Distinguish between stocks of capital goods and capital formation using a suitable example.
Solution
| Stocks of capital goods | Capital formation | |
| 1. | The stock of capital goods refers to the total amount of capital goods at a particular point in time. | Capital formation, on the other hand, involves an increase in the stock of capital goods during a certain time period. |
| 2. | Example: The number of machines as of March 31, 2015, in stock. | Example: The purchase of new machines during 2014-15 is capital formation. |
APPEARS IN
RELATED QUESTIONS
Define capital.
Differentiate the following with examples:
Money capital and sunk 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 ______________ .
Distinguish between Any FOUR of the following :
Fixed capital and Fluctuating capital.
Distinguish between the following:
Fixed capital and variable capital
(i) Define capital formation.
(ii) Briefly discuss the process of capital formation.
If you make investments in insurances or mutual funds, then it will be called as ______ type of capital.
______ is a produced means of production.
Capital as a factor of production.
______ is one of the three stages of capital formation.
Capital is a ______ means of production.
Creation of savings is the ______ stage of formation.
Distinguish between sunk and floating capital. Give an example of each.
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.
Government Bonds
Which form of capital, money capital or real capital, has a greater impact on national output?
Explain two factors on which the capital formation of a country depends.
Explain two ways in which labour is different from capital.
Define capital formation.
Differentiate between:
Capital and wealth
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?
Differentiate between an entrepreneur and labourer on the basis of the nature of risk involved.
Classify the following capital goods:
Cotton yarn
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
Which of these factors of production is called produced means of production?
