Explain five reasons how capital contributes to the economy of your country?

Answers (1)

You need to look up what the words mean. I think you meant "way" instead of "reason".

Capital is defined in economics as tools of production. When used any other way it is a slang term with no definite meaning.

Economy comes from Greek oikonomia which means a household. The English word economy means management, and since management always involves pinching pennies, it comes to mean frugality and overall money management. But the primary meaning is still management of anything.

It is a common slang term to say "economy" when you mean the total of all monetary activity in some area. This causes no confusion except that there is a tendency for people to forget what they are actually talking about, and that is when we see questions like yours.

BTW there are two kinds of economics. Traditional theories are based on reality and Keynesian theories use the same charts but turn them sideways because they seem to justify tax-and-spend policies that way. You need to be aware of both systems because bankers and politicians use the Keynesian system and anybody who has to show a profit uses the traditional system.

Votes: +0 / -0