ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The oven, mixer, mixing bowl, spatula, and baking trays are considered as the capital resource because they meet the criteria to be considered as one: they are man-made, contribute to the production process, and can be used in more than one instance of production.

Detailed explanation-2: -Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.

Detailed explanation-3: -Bakery: Imagining the production process of a bread loaf in a bakery; the bread pan, molds, mixing and grinding machines, oven etc. all are examples of capital resources employed by a bakery. All of these assets are made by man and play a substantial part in the production of bread.

Detailed explanation-4: -The four major types of capital include working capital, debt, equity, and trading capital.

Detailed explanation-5: -It is useful to differentiate between five kinds of capital: financial, natural, produced, human, and social. All are stocks that have the capacity to produce flows of economically desirable outputs. The maintenance of all five kinds of capital is essential for the sustainability of economic development.