ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The man-made items used in production.
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The cash in bank a firm has.
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The amount borrowed by the firm.
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The amount invested in the firm.
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Detailed explanation-1: -Capital is reckoned as goods used presently and goods that can be used in the future to satisfy our needs. Capital is also called as all the man-made goods that are used in the further production of wealth.
Detailed explanation-2: -Capital is typically cash or liquid assets being held or obtained for expenditures. In a broader sense, the term may be expanded to include all of a company’s assets that have monetary value, such as its equipment, real estate, and inventory.
Detailed explanation-3: -Definition: Wealth, as in money or property, owned, or accumulated by an individual, partnership, or corporation used or available for use in the production of more wealth. This includes all physical infrastructure (buildings, roads, machinery, etc.) used to produce goods and services.
Detailed explanation-4: -Capital is defined as “All those man-made goods which are used in further production of wealth.” Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, railways and all means of transport and communication, raw materials, etc., are included in capital.
Detailed explanation-5: -As a factor of production, capital refers to the purchase of goods made with money in production. For example, a tractor purchased for farming is capital. Along the same lines, desks and chairs used in an office are also capital.