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Study with Quizlet and memorize flashcards containing terms like Question on Left, What are capital resources?, Examples of Capital resources and more.
Study with Quizlet and memorize flashcards containing terms like Capital, Fixed capital, Social capital and more.
Study with Quizlet and memorise flashcards containing terms like Define capital, Examples of capital, Fixed capital and others.
In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
In economics, capital is defined as the already-produced goods (tools, machinery, equipment, and physical infrastructure) that are used in the production of other goods or services. A robot on a car factory floor is defined as capital in economics; money you borrow to start your own business is not.
The key to understanding capital is recognizing the value of goods and services that are used as resources to produce other goods and services. Buildings and machines, tools and materials, and knowledge, training and abilities are all elements of capital.
According to John Stuart Mill, capital is the “accumulated product of past labour destined for the production of future wealth”, i.e., when human labour is applied to natural resources, then capital items are generated.
