ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A farmer buying a tractor for his/her farm is an example of ____
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investment in capital goods
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investment in human capital
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investment in natural resources
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investment in entrepreneurship
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Explanation:
Detailed explanation-1: -Answer. It is an example of fixed capital as tractor can be used again after a use.
Detailed explanation-2: -Capital formation through investment in agriculture helps in improving the stock of equipment, tools and productivity of natural resources, which, in turn, enables the farmers to use their resources, particularly land and labour, more productively.
Detailed explanation-3: -Typical examples of physical capital goods agriculture include farm machinery, farm buildings and different types of facilities and equipment used in agricultural production.
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