What is the importance of capital in production? – InterviewSolution

InterviewSolution

1.	What is the importance of capital in production?
Answer» Capital has been a very important factor of production even in earlier stages of human development. In the hunting, stage man used some implements to kill wild animals for food. These implements were his capital. Since then capital in some form or the other has played a significant role in the economic development of society. Under capitalism, capital is most significant. It is equally important under communism. Though capital is not a primary factor of production yet its importance is as great as that of any primary factor of production such as land as labour.

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