Capital

Capital is money used to produce wealth, whether through investments, purchase of means of production, research, improving the infrastructure of a factory, etc. The use of capital developed druing the late Commercial Revolution as part of the economic theory of capitalism. It grew increasinly important as the economy of dominant Western Europe shifted from being agriculturally to industrially based following the Industrial Revolution. Capital is not just income, but rather income used to generate income.

Created by Frances Grimball Feb 11, 2009

Units 7 & 8