In this essay we will discuss about Capital in Economics. After reading this essay you will learn about: 1. Meaning of Capital 2. Characteristics of Capital.
Essay on the Meaning of Capital:
Capital is that part of wealth which can be used for further production of wealth. According to Marshall, “Capital consists of all kinds of wealth, other than free gifts of nature, which yield income.” Therefore, every type of wealth other than land which helps in further production of income is called capital. In this way, money, machine, factories, etc. are included in capital provided they are used in production.
For instance, if a man has an income of Rs 10,000 per month and out of it he invests Rs 6,000 in a business, this amount of Rs 6000 is called capital. In the same way, plough, tractor and other agricultural implements of farmers are also capital. The house in which a man resides is his wealth and the house which is given on rent is his capital.
Capital and Money:
All money is not capital. Money includes currency notes and coins which are circulated or minted by the government. But capital includes all those wealth’s such as machines, tools, buildings, etc. which are known as capital goods. Therefore, all the money is not capital. Only that part of money which is used for production of more income is called capital.
Capital and Wealth:
There is difference between capital and wealth. Only that part of wealth which is used for further production is called capital. Therefore, all capital is wealth but all wealth is not capital. Chairs and cots used in the home are wealth, but if these are given on rent they are called capital.
Capital and Land:
Like land, capital is also an essential factor of production but there is difference between capital and land. Capital is produced by man. He makes it with certain efforts. But the supply of land is a free gift of nature. Man cannot produce land. By way of production, supply of capital can be increased but not that of land. Land is immobile, while capital is mobile, because its supply can be easily changed.
Capital and Income:
There is a considerable difference between capital and income. Capital is that portion of wealth which is used for further production of income. Thus, income is the result of the use of capital. So capital is a stock, whereas the income is a flow produced from capital.
Real Capital and Financial Capital:
Real or national capital is the stock of producers’ goods such as machines, raw materials, factories, railways, buses, ships, houses, etc. which are used for the production of goods and services. It refers to man-made and reproducible resources which help in generating output and income.
Financial capital consists of all income earning financial assets such as holdings of money stocks, bonds, deeds or mortgages, etc. These are items of personal wealth. They are a claim on other individuals. The same is the case with bank deposits.
The rupees we spend or hold in our accounts are part of our personal wealth. They are a claim on goods and services, as in the case of stocks and bonds. Money holdings are financial capital and not real capital. Since financial capital is the claim on assets, it does not generate output and income.
Essay on the Characteristics of Capital:
Capital has its own peculiarities which distinguish it from other factors of production.
Capital possesses the following main characteristics:
1. Man Produces Capital:
Capital is that wealth which is used in the production of goods. Capital is the result of human labour. Thus, every type of capital such as roads, machines, buildings and factories etc. are produced by man. It is a produced factor of production.
2. Capital is a Passive Factor of Production:
Capital cannot produce without the help of the active services of labour. To produce with machines, labour is required. Thus, labour is an active, whereas capital is a passive factor of production. Capital on its own cannot produce anything until labour works on it.
3. Capital is a Produced Means of Production:
The composition or supply of capital is not automatic, but it is produced with the joint efforts of labour and land. Therefore, capital is a produced means of production.
4. Capital is Variable:
The total supply of land cannot be changed, whereas the supply of capital can be increased or decreased. If the residents of a country produce more or save more from their income, and these savings are invested in factories or capital goods, it increases the supply of capital.
5. Capital is more Mobile than other Factors of Production:
Of all the factors of production, capital is the most mobile. Land is perfectly immobile. Labour and entrepreneur also lack mobility. Capital can be easily transported from one place to another.
6. Capital Depreciates:
As we go on using capital, the value of capital goes on depreciating. When machines are used continuously for some time, these depreciate and their value falls.
7. Capital is Stored-up Labour:
Scholars like Marx admit that capital is stored-up labour. By putting in his labour man earns wealth. A part of this wealth is spent on consumption goods and the rest of it is saved. When saving is invested, it becomes capital. In other words, capital is the result of accumulation of savings of a man. Therefore, capital is stored-up labour.
8. Capital is Destructible:
All capital goods are destructible and are not permanent. Because of the continuous use, machines and tools become useless with the passage of time.
- Publish Your Article
- Report Spelling and Grammatical Errors
- Suggest Us
Your One-Stop Resource with the Best Essay Writing Service
Why students need essay writing service provisions?
The educational career of an individual, from school to university, is built partially on their performances through different writing assignments evaluated on the basis of grade. While these assignments help trigger their interests in particular subjects with capacity building, there are certain problems inherent to the process of their performance evaluation. At times, students face problems having less than sufficient time to complete their writing assignments. It might be because they lack an adequate understanding of the balance they need to find between doing research, learning and simultaneously writing. It might also be due to their long engagements to personal commitments such as part-time works. But in most of the instances, it is the complexities of the papers, language proficiency, lack of adequate subject knowledge, and high stress of completing a bunch of assignments that come in the way of successfully completing written assignments on time. To resolve these issues, we offer our quality writing services.
Our services help students overcome the problems and assist them in securing good scores in their academic progress. We have an experience of 8 years in writing services. We provide unique and customize essays on different subjects, such as science, literature, nursing, psychology, marketing, information communication technology, biology, management, and economics for the students of different disciplines. Our team of academic writers also offers expert essay writing service so that we can deliver a well-written paper to the students on time. We guarantee to deliver extensive writing services along with writing assistance to the students, catered by our versatile team of writing experts. We are one of the strongest players in this writing service business, offering cheap research papers and essays. Stating precisely, we offer article, essay, proposal, dissertation, assignment, and term paper services for students. Our professional essay writers are also accustomed to the different paper formats, as often demanded by the university, including APA, MLA, Harvard, Oscola, and Chicago referencing styles.
Students, you can avail our service Write My Essay
For our global students, we offer a service named, Write My Essay. Through this new service area, students can buy essays online at cheaper rates. Our writing team comprises top paper writers, with excellence in writing argumentative, scientific, and difficult subject specialization based academic papers. Additionally, they also welcome students’ queries regarding the paper writing and provide them a recommendation for their future betterment through effectively customized services. We have a bunch of new services recently designed to serve the students better. Buy an Essay is one of them, which allows the students to directly buy readymade writings from our stocks of essays. Furthermore, the students can also use personal essay helper to prepare their writing, as displayed on our website contents. Which the students can access through the option Write Essays for Me and Write Essay for Me to choose their preferable online essay writers. Both these offers provide similar services, although we have recently introduced two different counters for the students’ ease. We understand the value of students’ money for which we offer several decent and affordable services through our special content services. Furthermore, to choose the perfect option according to your preference you can go to the Sale option on our website.
Hurry! You can get custom writing help from us!
Our custom writing help provides students with plagiarism free services. Students can order custom paper along with their preferable essay writer from our website as per their need. From the past 8 years of service provisions, we offer students with the best possible academic writing. Students can create an essay using our online services by placing their orders. We are different from other freelance service providers, in terms that we are a team sharing a common vision to aid students in attaining good grades. We have a set of good essay writers who are available 24/7 at your service. Students, who recently joined our services, can find essay writers online as per their preference for their quality essay help. For this month, our team is offering a new service under the title college essay writing services, specialized for college students. With the help of this unique service provision, college students get assistance from a team of professional college essay writer. Additionally, they can choose their writers from our service using the tab for who can writer essay for me, wherein we have listed our top professional writers along with their qualifications, career profiles, and additional skills.
We are providing cheap professional essay help for you!
Students can also request for our service through the professional essay help page on our website. This service provision is available for every student irrespective of their educational disciplines. Bachelor degree pursuing students can get a special offer from us as well. They can choose their personal writer from our listed professional writers. Moreover, students can avail the discount coupons for their preferable services. To gather the details regarding the bonus and discount, students can go through the column titled as cheap essay writers on our website. We happily announce that our webpage also provides students with loyalty cards. To get these loyalty cards, students need to order an essay of minimum 4 to 5 pages no less than three times in a month. Through this loyalty card, our students can gain points for their further orders according to their requirements.
Are you worried about your research paper writing? Don’t worry we are here.
Our services are capable of providing you with quality research paper writing as per your preferences. We have an easy process of order and payment. The criteria for order placement on our website are simple and easy to understand. Our website has a custom research paper for sale. Under this specific content, students can obtain research paper service based on their specific requirements. Mostly the students prefer customized research papers from our quality writers, which is also included in our core service provisions. Students can as well avail professional research paper help from our team of quality writers. For the research papers, at the time of order placement, students need to clearly state about their specific requirements. Additionally, if they want to choose their writer from our core team, they need to apply for this service at the initial phase of order placement. Based on their requirements and criteria, we provide them with the required service along with the writer.
Now, you can buy essay online at a cheaper rate!
Our special service offers students to buy essay online at a relatively lower price. Students from different educational disciplines require assistance for writing essays, dissertations, articles and term papers. Our core team hence provides relatively cheap essay writing service for students. This is a special offer that we have continued for the long-term. In addition, to have easy access to cheap writing services, we offer a new account facility for our students. It is advantageous for placing faster orders, as students do not need to sign up. Via e-mail accounts, they can contact our team of experts and place their orders at any time. Contextually, for students’ security concerns, we ensure a comprehensive privacy setting on our website and payment criteria. Additionally, for free review/alterations, we offer a 15 to 30 days time span, within which students can revise their papers on the basis of initial instructions. We are open to serve the students 24/7, so they do not need to worry about their papers, revisions, and reviews irrespective of which time zone they belong to. For further information, students can check our website or contact us through e-mail.
We are here to help you submit well-written academic papers on time. At Essay Capital, you can hire one of our academic writers with extensive experience in your field. Be it a high school essay or a Ph.D. dissertation, we’ve got your back. Just choose from 20+ disciplines and 30+ types of papers and we’ll pair you up with a subject-relevant writer in seconds.
We take the headache and sleepless nights out of student life. Whatever it takes to get the results you want, we’ll help you get there. 50K of our clients already enjoy our benefits:
- experienced, background-checked writers
- money-back guarantee
- zero plagiarism
- 14-30 days of free revisions
- 100% confidentiality
- on-time delivery
- 978Native writers
- 86Customer retention
Your paper will be written from scratch and tailored to your requirements. Our writers use Copyscape to check their papers for plagiarism. Papers that have 0% of plagiarism are availed to the customers. All sources will be properly referenced in line with your chosen referencing style.