EconomicsNEB 2075 (old course)

Write any four features of capital.

2

Answer

Capital refers to the produced means of production used to produce other goods and services. Here are four key features of capital:

  1. Man-made: Capital is created by human effort and is not found in nature. It includes tools, machinery, buildings, and infrastructure developed through labor and technology.

  2. Durable: Capital goods are long-lasting and used repeatedly in the production process. For example, machinery and factories can be used for many years.

  3. Aid in Production: Capital facilitates the production of other goods and services. It increases productivity by reducing manual labor and improving efficiency.

  4. Transferable: Capital can be moved from one place to another or used in different production processes. For instance, machinery can be relocated to different factories or industries.

Discussion

Loading…

More Economics questions

All Economics old questions