ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The third factor of production is capital, or capital goods, which are the tools or equipment necessary for production. Capital is both the result of production (assembly of a bulldozer) and can be used in production (bulldozer used on a construction site).

Detailed explanation-2: -Capital is unique because it is the result of production. A bulldozer, for example, is a capital good used in construction.

Detailed explanation-3: -The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.

Detailed explanation-4: -Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.

Detailed explanation-5: -The tractor is a capital among factors of production. A tractor is a machine, and hence, assists in production based on technology. It is neither a natural resource nor labor. It is also not an entrepreneurial ability.