Capital for investing in the means of production in industrial revolution
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What is 'capital' in relation to the factors of production?
By Mary Hall | Updated January 23, 2018 — 5:16 PM EST
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When economists refer to capital, they usually mean the physical tools, plants and equipment that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor and entrepreneurship. Common examples of capital include hammers, tractors, assembly belts, computers, trucks and railroads. The word "capitalist" refers to the owners of economic capital. During the onset of the Industrial Revolution, mass-producing capitalists started to become dominant employers. To paint those who owned factories as the "bad guys," early socialists created the term capitalist as an expression of derision. Economic capital is distinguished from financial capital, which includes the debt and equity accumulated by businesses to operate and expand
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