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Why is money not considered to be a capital resource in economics?
Wiki User
∙ 14y ago
Because money does not produce anything. Something is a capital resource because it produces ... it makes consumables or produces services.
Wiki User
∙ 14y ago
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Why isn't money considered a capital resource?
Money IS a capital resource.
Why is money considered a capital resource?
BY definition, capital resource means physical money.
Why money is not considered as factor as production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What type of resource is money?
capital
Why isn't money considered a capital resource?
Money IS a capital resource.
Why is money considered a capital resource?
BY definition, capital resource means physical money.
Why money is not considered as factor as production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What type of resource is money?
capital
What type of resource money?
capital
Why is money not considered capital in economics?
Capital is a physical asset which can be used to produce goods and services. Money is related to capital, in that it can be used to purchase capital, but it is not itself capital. The distinction is important if you consider that money can be created or destroyed through the expansion or contraction of credit, but this does not create or destroy any real capital. Money is capital. Money is the most common form of capital. Raising capital i.e. money for investment is a common practice.
What are some capital resources?
Any resource that has money involved.
What does capital mean in science?
Content would be useful, but generally capital means a resource, normally money.
Why is capital said to be an artificial resource?
its money MADE by HUMANS which means anything man made is artificial thats why its said to be an artificial resource
Why do economics not view capital as money?
because money is just a medium of exchange used to make the buying and selling of goods and services easier.
How capital and land considered the same thing?
Capital is anything that has value. Land is capital, but capital doesn't have to be land. Capital can also be money.
