Question

Define Capital. (Topic: Factors of Production)

Answer 1

physical capital is classified into fixed capital and working capital
1. fixed capital - this includes tools ,machines and buildings that can be used in production over many years
2 - working capital - raw materials and money in hand

another capital is human capital
human capital- this is the stock of skill and productive knowledge embodied in them .

Answer 2

Capital is defined as the productive part in a firm’s wealth and is the third factor of production.

• Wealth is the sum of all money, goods, human values, that can be useful in further wealth production. Yet capital is the element of this wealth that is in active use at the moment. Idle lying resources are wealth, but not capital.
• Capital is therefore regarded as the man-made means of production. Capital will therefore include all man-made goods used in the manufacturing process. It is referred to as manufacturing tools, such as factories and machines.
• They are separated them from consumer goods is their use in commercial production. Hammers, forklifts, conveyor belts, machines, and delivery vans are some other examples of property. The increase in capital goods means an increase in the economy's productive capacity