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What do you understand by the term 'Capital formation'?

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प्रश्न

What do you understand by the term 'Capital formation'?

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उत्तर

  1. Capital formation is a crucial aspect of economic development, representing the creation of capital.
  2. In simple terms, it involves making and increasing capital goods like machines, tools, factories, and buildings, essential for producing more goods.
  3. Importantly, capital formation does not signify an increase in monetary capital; rather, it refers to the growth of physical capital, including machinery, factories, transport equipment, infrastructure like bridges, power projects, dams, and irrigation systems.
  4. In essence, capital formation implies the creation of tangible, real assets, playing a vital role in fostering economic development.
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अध्याय 4: Factors of Production - QUESTIONS [पृष्ठ ११७]

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गोयल ब्रदर्स प्रकाशन Economic Applications [English] Class 10 ICSE
अध्याय 4 Factors of Production
QUESTIONS | Q 20. (a) | पृष्ठ ११७

संबंधित प्रश्न

Primary factors are


Entrepreneurship is otherwise called ______.


What are the primary factors of production?


The factors for production are ______, ______, ______.


Which factor of production is not a hired factor?


The reward of an entrepreneur is in the nature of ______.


Which of the following types of capital gets exhausted after its use and gets embodied in the finished product?


Mention two differences between an entrepreneur and other factors of production.


What do you mean by 'innovative ability' of an entrepreneur?


Explain complex division of labour with the help of an example.


Define capital.


Explain any three characteristics of capital.


The Indian labour suffers from low efficiency. Explain your answer with three reasons for low efficiency of Indian labour.


What do you understand by ‘changing pattern of land use’? 


Explain any three such changes causing destruction to the ecosystem.


Identify the factors of production of the following case and differentiate between them.

An active and passive factor of production.


Which of the following is not a correct match?


Match the following and select the correct option.

  Factor of Production   Reward of factor of production
(i) Land (A) Wage
(ii) Labour (B) Profit
(iii) Capital (C) Rent
(iv) Entrepreneur (D) Interest

Tick the one which does not belong to the following group.


All factors of production are equally mobile.


Match the following:

Factor of Production Characteristic
A. Land (i) Subject to depreciation
B. Mannual labour (ii) Risk and Bearing
C. Capital (iii) Permanent
D. Entrepreneur (iv) Involves physical work

Choose the correct alternative:


Why is capital called a 'produced means of Production?


Define production.


Who is called an "Entrepreneur" in the factors of production?


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