Question

What do you mean by capital in economics

Answer 1

Capital usually have different meanings in various disciplines related to Commerce.Particularly,in Economics,capital refers to one of the factors/inputs of production which are used in production process by firms or companies.

Explanation:

In Economics,capital is traditionally referred to as one of the factors/inputs of production that are used for production of goods and services by any company or business organization.Capital,as a factor of production,essentially refers to the physical inputs in the production process such as capital equipment,machinery,physical tools and similar technical or physical assets.Therefore,as opposed to investment finance,which is referred to as capital in Accounting and Finance,capital in Economics basically means physical inputs or factors of production.