State whether the following statement are TRUE and FALSE. 4. Capital is a natural factor of production.

State whether the following statement are TRUE and FALSE.

4. Capital is a natural factor of production.

Capital is a natural factor of production. – False

Explanation:



The above statement is incorrect. Capital includes money invested in the business, machinery and tools which are produced and invested in by the human beings. Unlike land, capital is not a natural factor of production. It is not a gift of nature. Rather, it is a man-made factor of production. Thus, capital is regarded as an artificial factor of production.

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