Physical Capital Information
In economics, physical capital or just 'capital' refers to any already-manufactured asset that is applied in production, such as machinery, buildings, or vehicles. In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function. The others are natural resources (including land), and labor — the stock of competences embodied in the labor force. "Physical" is used to distinguish physical capital from human capital (a result of investment in the human agent)) and financial capital.[1][2] "Physical capital" may also refer to fixed capital, any kind of real or physical asset that is not used up in the production of a product, as distinguished from circulating capital.
See also
Notes
- ^ Paul A. Samuelson and William D. Nordhaus (2004). Economics, 18th ed., Glossary of Terms"Factors of production," "Capital," "Human capital," and "Land."
- ^ Deardorff's Glossary of International Economics, Physical capital.
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Categories: Economics | Capital | Economics terminology
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