Different Types of Capital

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.