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Discuss any three characteristics of capital. |
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Answer» Characteristics of Capital are : (i) Capital is man-made- It is created by man. Its supply is increased or decrease by the efforts of man. (ii) Capital is a passive factor- It is a passive factor of production because it becomes ineffective without cooperation of labour. (iii) Capital depreciates- If capital is used again and again it depreciates. (iv) Capital is prospective- Capital is considered much prospective, as the accumulation of capital yields an income. |
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