Economics » Factors of Production » Features and Rewards

Capital

Capital refers to any man-made tool or piece of equipment that aids man in the production of goods and services. It can also be man-made assets used in production. It comprises of machinery, equipment, and buildings referred to as fixed capital and money which is referred to as liquid capital. The reward for capital is called interest.

Features of Capital

  1. It is man-made, temporary, and mobile.
  2. It is durable.
  3. It is subject to depreciation.
  4. It may be in a fixed or liquid form.
  5. It differs from time to time.

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