JAMB 2018 Economics · Question 85

The following are types of capital except:___________

Options

  1. A.Current capital
  2. B.Saving capital
  3. C.Working capital
  4. D.Social capital

Answer: B. Saving capital

Explanation written with AI and checked against the answer key

Step 1: Analyze the question We need to find the option that is NOT a recognized type of capital in economics.

Step 2: Explain the concept In economics, capital is a man-made resource used to produce other goods and services. Common classifications include:

  • Fixed capital: machinery, buildings, equipment (used repeatedly)
  • Working (circulating) capital: raw materials, money for day-to-day running of a business
  • Current capital: another term for circulating/working capital, i.e. capital used up in a single production cycle
  • Social capital: infrastructure and facilities provided by government for public use (roads, hospitals, schools, bridges), also used for networks of relationships
  • Human capital: skills, knowledge and education of workers
  • Private capital: capital owned by individuals or firms
  • Sunk capital, Liquid capital, Venture capital, etc.

Step 3: Check each option

  • A. Current capital: a recognized type, since it is circulating capital.
  • B. Saving capital: not a standard classification. Saving is income not spent on consumption, and it can provide funds for capital formation, but "saving capital" is not a type of capital.
  • C. Working capital: a recognized type.
  • D. Social capital: a recognized type.

Step 4: Answer The odd one out is B. Saving capital.

Tip: Learn the standard list: fixed, working/circulating/current, social, human, private, public. If an option sounds like a general economic term (such as saving, investment, or income) rather than a classification of capital goods, it is probably the exception. Don't confuse saving (a flow of income not spent) with capital (a stock of productive assets).

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