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In this context the noun "capital" refers to a city or town that is the seat of government. It can be interchanged with the term "capital city"

Examples: Austin is the (state) capital city of Texas, USA; Washington DC is the (national) capital city of the USA; Canberra is the (national) capital city of Australia; Sydney is the capital city of New South Wales, Australia; Tokyo is the (national) capital city of Japan.

The noun "Capitol" refers primarily to the building in Washington, D.C., in which Congress sits or, to a lesser extent, to similar buildings used by state legislatures.

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Q: What is the difference between a capital and a capital city?
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