Capital is the manufactured, artificial, or
synthetic goods used in the production of other goods, including machinery,
equipment, tools, buildings, and vehicles. Capital is the produced factor of
production. This factor must be produced using other factors of production,
which means that society is often faced with the choice between producing
consumption goods that satisfy wants and needs and capital goods that are used
for future production. Without capital, labor would do ALL production "by
hand." The key role of capital in the production process is to make labor
more productive. While a covey of construction workers might be able to
fabricate a four-bedroom house with nothing but bare hands, an assortment of
hammers, saws, and other tools is bound to make their work easier and more
productive
