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What is the relationship between capital goods and human capital?
Wiki User
∙ 13y ago
Capital goods are generally man-made, and do not include natural resources such as land or minerals, or "human capital" - the intellectual and physical skills and labor provided by human workers.
Wiki User
∙ 13y ago
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Economists speak of the different types of resources that can be utilized in the production of a good or service. These resources also known as factors of production can be put into four broad categories these are land, labor, capital and entrepreneurship. Capital is defined as buildings, equipment, and other assets that assist in the production of goods or services.Economists classify capital in terms of physical capital, human capital, and social capital. Physical capital consists of tangible items used to produce goods and services. Human capital consists of the education and training of the individuals in the production of goods and services. Social capital consists of the social connections, norms of behavior and trust between individuals that assists in the production of goods and services.
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