ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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providing free healthcare
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modernising machinery
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providing skills training
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reducing the cost of attending university
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Detailed explanation-1: -Examples include plants, office buildings, manufacturing machinery, and vehicles. Spending to purchase these assets is known as capital expenditures (CapEx).
Detailed explanation-2: -Capital Resources (capital goods) Goods made by people and used to produce other goods and services (machines and factories).
Detailed explanation-3: -Capital goods are the assets used by businesses in the course of producing their products and services, and can include buildings, machinery, tools and equipment. Capital resources is a higher-level concept, defined slightly differently by different scholars.
Detailed explanation-4: -The three main sources of capital for a business are equity capital, debt capital, and retained earnings. Equity capital is where a company raises money by selling off a percentage of the business in the form of shares which are purchased and owned by shareholders.