In a tailoring unit, which of the following is ‘capital’ as per the NCERT Glossary meaning of the term?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The sewing machine used to stitch shirts
A sewing machine is made by people and is used again and again.
Option (1) The plot of land on which the unit stands — Incorrect. A plot of land is a fixed natural resource, part of land.
Option (2) The cloth that is used up in stitching the shirts — Incorrect. Cloth is produced, but it is used up entirely in stitching, so it does not meet the meaning of capital.
Option (3) The physical effort of the tailors — Incorrect. The tailors’ effort is labour, human physical effort.
Option (4) The sewing machine used to stitch shirts — Correct. The machine is produced and lasts over many rounds of production.
Land and capital are easy to mix up. Land comes from nature; capital is produced and lasts beyond one use.
NCERT (2026-27): Glossary: “Capital – Factor of production which has itself been produced and which is not generally entirely consumed in the production process.” Glossary: “Land – Natural resources used in production – either fixed or consumed.” Glossary: “Labour – Human physical effort used in production.” |