Question

What is meant by 'Consumption of fixed capital'? ​

Answer 1

ANSWER

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Consumption Capital :- It consist of those goods which indirectly help the process of production. Examples of consumption capital are : food, clothes to workers, and others. Properly nourished workers would certainly produce more goods and services.

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Production Capital :- It includes all those things which help the labour directly in production. Examples of production capital are : raw materials, machines, equipments and other implements.

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