Share This Article:

Economic Definition of capital. Defined.

Offline Version: PDF

Term capital Definition: One of the four basic categories of resources, or factors of production. It includes the manufactured (or previously produced) resources used to manufacture or produce other things. Common examples of capital are the factories, buildings, trucks, tools, machinery, and equipment used by businesses in their productive pursuits. Capital's primary role in the economy is to improve the productivity of labor as it transforms the natural resources of land into wants-and-needs-satisfying goods.


« capacity utilization rate | capital account »


Alphabetical Reference to Over 2,000 Economic Terms