Capital and Labour

Capital and labor are two fundamental factors of production in economics. Capital refers to the financial resources, machinery, buildings, and tools used to produce goods and services. It represents investments made to enhance productivity. Labor, on the other hand, is the human effort, skills, and time dedicated to creating these goods and services. Together, capital and labor drive economic activity, with capital providing the means to produce, and labor bringing those means to life through work and expertise. The balance and interaction between the two are crucial for economic growth and efficiency.