Meaning of capital with features/ characteristics.

 Capital - Factor of production... 

In common language, capital refers money. But in economics, all the man made goods and services which are used to produce other goods and services are called capital. It's a produced means of factors of production. Money is also a capital but idle cash can't be considered as capital. Examples of capital: building, furnitures, vehicles, raw materials, machineries etc. 

       Following are the features/characteristics of capital: 

1. Man-made factor: It's a man-made factor of production. It's a result of savings. It is saved by postponing the present wants in favour of the future. 

2. Mobile factor: Of all the factors of production, capital is the most mobile. It can easily be transferred from one place to another. 

3. Elastic factor: Capital is an elastic factor because it can be managed according to our need. It can be whether increased or decreased decreased according to our needs and necessity. 

4. Result of saving: Capital is the result of saving. It is saved by postponing the present wants in favour to the future. 

5. Passive factor: Capital is a passive factor of production. Unless it is combined with labour, capital is of no use and it remains idle. 

6. Necessary factor: Capital is a necessary factor of production because without capital no other factors of production can be operated. Without capital production can't be done.