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Answer in Brief. State the Features of Capital. - Economics

Answer in brief.

State the features of Capital. 


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Capital includes all the capital goods or assets used in production. These assets are used by the labour to produce goods.
The following are some of the features of capital:
i. Artificial factor- Capital cannot produce goods on its own and therefore, is regarded as an artificial factor of production.
ii. Derived demand- Capital is used in the production of goods meant for final consumption. It cannot be consumed directly. Therefore, it is said to have a derived demand.
iii. Highly mobile- Capital includes machinery, raw materials etc. which can be easily transferred from one place to the other and from one occupation to the other.
iv. Elastic supply- The amount of capital can be increased at any time as per the requirement and availability of funds.
v. Durable- Capital is durable in nature in the sense that it can be used again and again in the production process.

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