What are the features of capital?

1.	What are the features of capital?
Answer» 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.

Answer»

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.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?