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. Capital differs based on the worker and the type of work being done.

Detailed explanation-2: -In most countries, human capital determines the rate of development, economic, technological, and scientific progress. Human capital leads to more innovations in the areas of production and other related activities. Innovation leads to more growth. Human capital also creates the ability to absorb new technologies.

Detailed explanation-3: -Factors of production are economic resources used to create goods and services. The four factors of production are: land, physical capital, human capital and entrepreneurship.

Detailed explanation-4: -Human capital: the skills and education embodied in the work force of the economy.