What is capital as a factor of production?

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. Petersmarck gives examples such as a craftsman's hammer or a doctor's MRI machine. It is not to be confused with money, which he says "can buy capital but is not used to produce capital."

What is a factor of production in economics?

Factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. What are some examples of land as a factor of production?

What are the four factors of production?

This transcript discusses the four factors of production: land, labor, capital, and entrepreneurship. Land refers to natural resources, while labor is the work that goes into production. Capital is the tools and buildings used to produce things, and entrepreneurship is the know-how of putting it all together.