Labor and capital theory

Labor and capital theory explores how economic value is generated through the contributions of workers (labor) and resources like machinery, buildings, and tools (capital). Labor involves human effort, skills, and work, while capital refers to physical assets used to produce goods and services. The theories analyze how these inputs combine to produce output, how they are valued, and how they influence wages, investment, and economic growth. Essentially, the balance and productivity of labor and capital are crucial in determining a country's economic performance and income distribution.