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16 September, 08:53

As a factor of production, how is capital created

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Answers (2)
  1. 16 September, 09:00
    0
    though borrowing loans

    Explanation:

    one can borrow a loan from the bank and start a business
  2. 16 September, 09:18
    0
    The correct answer would be, By adding Human labor to the Land.

    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.
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