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Definition of capital

Updated: 4/28/2022
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11y ago

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In economics, capital, capital goods, or real capital are those already-produced durable goods that are used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process. Capital is distinct from land in that capital must itself be produced by human labor before it can be a factor of production. In a fundamental sense, capital consists of any produced thing that can enhance a person's power to perform economically useful work.

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