In this article we will discuss about:- 1. Meaning and Definitions of Capital 2. Characteristics of Capital 3. Functions 4. Examples 5. Importance. Meaning and Definitions of Capital: Capital is defined as "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, [...]
Some of society's capital stock is social capital. This is capital mainly owned by the state and used to produce goods and services that are not, on the whole, sold for money. Examples of social capital are roads, schools, hospitals, public parks and libraries. We often use the term 'SOC' as a synonym for infrastructure. It is further divided into [...]
In this article we will discuss about the concept of capital formation. Advanced countries are characterised by high levels of capital investment. This results in a high level of income flow. Contrarily, developing countries like India are capital-scarce. Consequently the level of income is low. In low-income countries saving is low. There exists gap between saving and investment. The most [...]