Posted by Anjali Kaur on Jun 20, 2020

What are the types of capital used in production?

We have discussed factors of production; there are four factors of production – land, labor, capital, and entrepreneurship. Our today’s focus is on the types of capital in the production process. Okay, let’s learn.

Types of capital used in the production process

There are two capital used in production process:

  1. Physical Capital: Physical capital includes all those tangible resources which are required for further production; like plant & machinery, buildings, equipment, etc.
  2. Human Capital: Human capital refers to the stock of skill, ability, expertise, education, and knowledge in a nation at a given point in time.

Photo by Aaron Burden on Unsplash

Learn with Anjali started because there wasn't an easy-to-consume resource to help students with their studies. Anjali is on single-minded mission to make you successful!

If you would like to suggest topics, leave feedback or share your story, please leave a message.

Leave a message