Capital in Economics

Capital in Economics is a factors of production that are used to create goods or services and are not themselves in the process. It is a stock of resources that may be employed in the production of goods and services and the price paid for the use of credit or money, respectively. It is an input in the production function. Capital consists of any produced thing that can enhance a person’s power to perform economically useful work—a stone or an arrow is capital for a caveman who can use it as a hunting instrument, and roads are capital for inhabitants of a city.