JAMB - Economics (2019 - No. 62)

Let capital formation = CF, Production = P, C = consumption. Then CF =_______

P - C

P + C

P/C

Explanation

Capital Formation or capital accumulation refers to increasing a country's stock of real capital. There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be subtracted from production.

JAMB - Economics (2019 - No. 62)

Explanation

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