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Evaluation

DropDown Activity

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includes all those goods (items or commodities) which are used for further production of more goods. Capital can be grouped into fixed and working capital. comprises of those resources which have a longer lifespan whereas refers to the capital available for conducting day-to-day operations of an organization. The reward for capital is earned. Capital can move from one place to another hence it is mobile. It can be put into various uses too, hence it is mobile. 

 

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Cloze Activity

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Q1. All man-made resources such as tools and other resources used for production of goods and services are called .

Q2. The amount paid to contributors of capital to reward them for investing is known as .

Q3. Amongst all the factors of production, which one has the highest mobility? .

Q4. is another term that can be used in place of geographical mobility.

Q5. If any machine is used for a considerable period, then it may not be suitable for further use because of .

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True-False Question

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Question 1

1. Without co-operation of labour, capital is an active factor of production.

Question 2

2. The supply of capital is increased or diminished by the efforts of man.

Question 3

3. When capital moves from one place to another, we say it is geographically mobile.

Question 4

4. Capital can be improved due to advancement in technology.

Question 5

5. Production of capital involves some cost as it is a natural gift.

Question 6

6. Capital is an essential factor of production.