Economy, asked by shimlarajput4784, 11 months ago

Characteristics Of Capital

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Answered by gagagarg8
1

Answer:

(i) Capital is man-made. It is, therefore, possible to increase its supply when the situation requires.

(ii) It involves the element of time, as it renders its service over a period of time. That is why payment for capital is calculated in terms of so much per cent per annum.

(iii) The use of capital makes roundabout methods of production possible. Its application increases efficiency and the productive power of all the factors with which it is combined and used.

Explanation:

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