Capital

Definition

Capital represents all man-made goods that are used in production to create other goods and services. It includes physical assets such as machinery, equipment, tools, buildings, technology, and infrastructure.

Related terms

Physical Capital: Physical capital refers specifically to the tangible assets used in production, such as machinery and equipment.

Financial Capital: Financial capital refers to funds or money that is invested in businesses or used for productive purposes.

Depreciation: Depreciation is the decrease in value of a capital asset over time due to wear and tear, obsolescence, or other factors.