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As a factor of production, how is capital created

User Jameseg
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2 Answers

5 votes

Answer:

though borrowing loans

Step-by-step explanation:

one can borrow a loan from the bank and start a business

User Vmalloc
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5.5k points
3 votes

Answer:

The correct answer would be, By adding Human labor to the Land.

Step-by-step explanation:

There are many different types of capital that a business or company possesses. The capital can be in the form of Money, Assets, human, stocks, etc. Different forms of capital are used in different areas or for different purposes. For example, money capital can be used in starting a new business unit. Similarly, in the production factor, labor will be used as a capital to work on the production facility. So as in the given question, the capital created for the production will be the Human Labor.

User Sharakan
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