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Capital
The term capital is used in economics in various senses. In ordinary language and sometimes in economics also capital is used in the sense of money. But when we talk of capital as a factor of production to confuse capital with money is quite wrong. Of course money is used to purchase velour factor such as raw materials machinery labour which is available for investment and productive purposes has been called money captivator financial capital by some economists. But money capital is not the real capital the real capital consists of machinery tools tube well. Factories tractors etc. which directly assist in the production of goods similarly government securities and bonds shares and debenture of public limited companies do not represent real capital securities bonds stocks etc. possessed by individuals yield income to them but they cannot be called real capital because they represent only titles of ownership rather than factors of production.
Capital has been rightly defined as produced means of production this definition distinguishes capita form both land and labour because both land and labour are not produced factors land and labour are often considered as primary or original factor of production. But capital is not a primary or original factor; it is a produced factor of production capital has been produced by man by working with nature. Therefore capital may well be defined as man-made instrument of production capital thus consists of those physical goods which have produced for use in future production. Machines tool sand instrument factories canals dams transport equipment stocks of raw materials are some of the examples of capital. all of the mare produced by man to help in the production of further goods. According to proof Richard T. Gill a country capital is its stock of produced or man-made means of production consisting of such items as buildings factories machinery tools equipment and inventories go goods in stock.
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Capital has been rightly defined as produced means of production this definition distinguishes capita form both land and labour because both land and labour are not produced factors land and labour are often considered as primary or original factor of production. But capital is not a primary or original factor; it is a produced factor of production capital has been produced by man by working with nature. Therefore capital may well be defined as man-made instrument of production capital thus consists of those physical goods which have produced for use in future production. Machines tool sand instrument factories canals dams transport equipment stocks of raw materials are some of the examples of capital. all of the mare produced by man to help in the production of further goods. According to proof Richard T. Gill a country capital is its stock of produced or man-made means of production consisting of such items as buildings factories machinery tools equipment and inventories go goods in stock.
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