FACTORS OF PRODUCTION CONTD
Hi Everyone, How Beautiful is
today? Magnificent isn't it, well I think so too. Just being alive is such a
pleasure and a privilege that sometimes, I think of some great people who have
died and I am filled with awe that God picked me to live till today. God is
Good.
Last time we started this series
and today hopefully we will either finish or draw closer to the close of this
particular topic so let's take this ride together.
CAPITAL
Capital may be defined as man-made
assets used in production. In other words, It refers to Man-made wealth or
goods used to produce other goods and services. It may also be defined as the
stock of previous wealth invested in order to produce future wealth.
Capital when properly combined with
other factors, produces goods and services. Examples of Capital include
Physical Cash, Cutlass, Machines, Buildings, Motor Vehicles and other equipment
used in the production of goods and services. The Reward for Capital is INTEREST.
Characteristics/Features of Capital:
* Capital is man-made before it can
be used in further production of goods and services.
* Capital is durable assets that
can be used for production.
