Question

Capital formation in an economy depends on

Answer 1

Capital, Saving, Investment and Capital Formation. Capital refers to the stock of all the produced means of production that an economypossesses at a point of time. Capitalincludes only those means of production which are produced by man. For example – Plant and machinery, tools and instruments.

Answer 2

Capital, Saving, Investment andCapital Formation. Capital refers to the stock of all the produced means of production that aneconomy possesses at a point of time. Capital includes only those means of production which are produced by man. For example – Plant and machinery, tools and instruments.