Question

which one of the following is not capital?
a) textile machine
b) agriculture land
c) raw material
d) factory building​

Answer 1

Answer:

C or B is the correct answer

Answer 2

Answer:

Raw material is not a capital. (Option c)

Explanation:

• The term capital has various references in economic terms.
• It can be defined as the produced means of production.
• Fixed capital refers to the investment of funds produced from the long-term belongings of the company.
• Machineries, tools, factories, tractors, etc., help in the production of goods.
• Securities, bonds, stocks, etc., possessed by individuals help to earn money, but can’t be called fixed capital as they reflect only titles of ownership rather than factors of production.
• Therefore, capital includes physical goods used for the production of goods.
• Instruments, machineries, tools, canals, dams, etc. can be considered capital.
• Thus, raw materials are not capital.