ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In economics, capital refers to the assets-physical tools, plants, and equipment-that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.

Detailed explanation-2: -Additional or improved capital goods is intended to increase labor productivity by making companies more productive and efficient. Newer equipment or factories leads to more products being produced, and at a faster rate.

Detailed explanation-3: -In short, a capital increase refers to increasing your company’s own funds, i.e. carrying out financing operations either by issuing new shares or by increasing the par value of existing shares.

Detailed explanation-4: -Why would an increase in capital resources lead to an increase in worker productivity? a. More capital means that fewer workers are needed, increasing output.

Detailed explanation-5: -An increase in physical productivity causes a corresponding increase in the value of labor, which raises wages. That is why employers look for education and on-the-job training. Knowledge and experience increase the human capital of the workers and make them more productive.