Question

Q2.Capital formation involves making of more ------------- like machine, factories, transport equipment etc. which are all used for further production of goods give me one word answer

Answer 1

Answer:

Capital formation means increasing the stock of real capital in a country.

In other words, capital formation involves making of more capital goods such as machines, tools, factories, transport equipment, materials, electricity, etc., which are all used for future production of goods.

For making additions to the stock of Capital, saving and investment are essential.

Answer 2

Answer:

Capital formation means increasing the stock of real capital in a country.

In other words, capital formation involves making of more capital goods such as machines, tools, factories, transport equipment, materials, electricity, etc., which are all used for future production of goods.

For making additions to the stock of Capital, saving and investment are essential.