Advertisements
Advertisements
Question
Which form of capital, money capital or real capital, has a greater impact on national output?
Answer in Brief
Solution
- Real capital means capital goods such as properties, machines, plants, etc. Money capital, on the other hand, means money (or cash in hand), which is utilised by the producers to purchase tools, equipment, and other kinds of goods needed for production.
- Real capital has a greater impact on national output as it helps increase production. Money capital helps in purchasing real capital.
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Capital depreciates. Explain
Write the forms of capital.
State whether the following statement is true or false. Give reason for your answer.
The capital like printing machines, tools when used in process of production are subject to depreciation.
______ is a produced means of production.
Mention two functions of capital.
Identify the form of capital given below. Give a reason for your answer.
Government Bonds
Define human capital.
Distinguish between fixed capital and working capital.
Classify the following capital goods:
Cotton yarn
Why is capital considered an important factor of production in the modern world? Give two reasons in support of your answer.
