What are the characteristics of capital as a factor of production?

The income that comes from capital is referred to as interest. Below are several defining characteristics of capital as a factor of production: Capital is different from the first two factors because it is created by humans. For example, capital goods like machines and equipment are created by individuals, unlike land and natural resources.

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.

What are examples of capital?

These include physical tools, plants, and equipment. Capital comprises one of the four major factors of production; the others are land, labor, and entrepreneurship. Common examples of capital include hammers, tractors, assembly belts, computers, trucks, and railroads.