Advertisements
Advertisements
Question
What do you understand by the term 'Capital formation'?
Advertisements
Solution
- Capital formation is a crucial aspect of economic development, representing the creation of capital.
- In simple terms, it involves making and increasing capital goods like machines, tools, factories, and buildings, essential for producing more goods.
- 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.
- In essence, capital formation implies the creation of tangible, real assets, playing a vital role in fostering economic development.
RELATED QUESTIONS
Derived factors are ______ and ______.
What are the factors of production?
Entrepreneurship is otherwise called ______.
What are the derived factors of production?
______ are called factors of production.
Use of high yielding variety of seeds of related to productivity of ______.
Which factor of production is not a hired factor?
What do you mean by 'innovative ability' of an entrepreneur?
Explain complex division of labour with the help of an example.
Explain any three factors which affect capital formation.
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.
Name the factors of production.
Match the following:
| Column I | Column II |
| 1. Factors of production | P. Human resources |
| 2. Land | Q. Man-made resources |
| 3. Capital | R. Economic resources |
| 4. Entrepreneur | S. Natural resources |
Choose the correct alternative:
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:
Define production.
Which of the following is an example of "Land" as a factor of production?
What does "Labour" refer to in the context of production?
Who is called an "Entrepreneur" in the factors of production?
Why are all four factors (Land, Labour, Capital, Entrepreneurship) important?
