ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Capital as a Factor of Production For example, a company that purchases a factory to produce goods or a truck that is purchased to do construction are considered to be capital goods. Other examples of capital goods include computers, machines, properties, equipment, and commercial buildings.

Detailed explanation-3: -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-4: -Capital as a factor of production refers to capital goods, or man-made resources, such as tools and infrastructure, used in the production of a good or service.