Question

What is mean by capital and the characteristics of capital in economics?

Answer 1

All those man-made goods which are used in further production of wealth.” Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, railways and all means of transport and communication, raw materials, etc., are included in capital.

Answer 2

Capital means money or materials

It is of two type :

Fixed capital : Things which does not need to be renewed frequently and can be used for many years .Eg : Tractor

Working capital : Things which is need to be renewed every year .Eg : Seeds for sowing !