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Which of the two is more important in economic growth (higher impact on national income) real capital and money capital? - Economic Applications

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Which of the two is more important in economic growth (higher impact on national income) real capital and money capital?

From real capital and money capital, which of the two has greater significance in economic growth or a greater impact on national income?

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Solution

  • Real capital has a greater impact on national output as it directly helps increase production.
  • Money capital actually helps purchase real capital.
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Chapter 1: Factors of Production - QUESTION BANK [Page 34]

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Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 1 Factors of Production
QUESTION BANK | Q 31. (ii) | Page 34
Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 4 Factors of Production
QUESTION BANK | Q 23. b | Page 120
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