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Q.

Choose the statement that is true/false:


A passive factor of production is capital.


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a

True

b

False 

answer is A.

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Detailed Solution

The above statement is true.
The productive portion of a company's wealth is its capital. The total amount of money, goods and other assets used to create more wealth is referred to as wealth. However, the portion of this wealth that is currently being used productively is capital. Wealth but not capital are idle resources. Therefore, the term "man-made means of production" refers to capital. Therefore, everything created by humans and utilised in the industrial process will be included in capital. To be fruitful, squires require The nature of capital is erratic.
 
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