Question

What are the characteristics of capital?

Answer 1

Characteristics of capital are:-

a) Man produces capital: Capital is needed for production. Capital is the result of human efforts.

b) Capital is a passive factor of production: Capital cannot produce without the active help of the labour.

c) Capital is the produced means of the production: Capital refers to the wealth which cannot be produced automatically. It is supplied because of the joint efforts of land and labour.

d) Capital depreciates: With the use of capital, the value of capital depreciates or loses its value.