Different Types of Capital

In this short introductory video , we will look at two important types of capital as an economic resource.

The economic problem involves decisions about how to make the best use of limited (scarce) resources when not all wants/needs can be fully satisfied.

These resources include land, labour, enterprise (or entrepreneurship) and capital.

Capital investment to an economist is not about saving money in a bank or purchasing shares/stocks - which the media likes to refer to as investment!

Investment is spending on new capital goods

Capital goods are man-made goods used to supply other products e.g. drones, new vehicles, bigger factories, hardware & the software to run it.