Principles of Macroeconomics / Unit 1 MAC 0007 short lesson, about 20 seconds
Factors of Production
Captions available
The idea
The factors of production are labor, capital and natural resources. Capital is anything produced in order to produce something else; human capital is skill gained from education and experience.
In practice
A hammer, a road and a software program are capital.
Where people slip
Money is not capital. A firm cannot produce with money directly, only buy capital with it, so money is financial capital instead.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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