Capital market

Capital market - agent of production It is also difficult...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Capital market Meaning and Importance: Capital is the second important factor of production. Whereas labor is a human agent, capital is a material agent of production. Capital is, however, a controversial factor. This is because capital is composed of a large variety of heterogeneous goods. There are no uniform units for its measurement. It is difficult to determine the productivity of capital. Leaving aside such issues we will attempt to collect useful information about this chief
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: agent of production. It is also difficult to find an accurate definition of capital. This is because capital is not confined to any set of goods as such; capital is a function that the goods perform. In the early 20 th century, the Austrian economist , Bohm Bawerk defined capital as a produced means of production . Two things are remarkable in this definition....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online