Capital
An assets that can enhance one's power to perform economically useful work
Real World Example
During the Industrial Revolution, which began around 1750, capital referred to the money and resources needed to build factories, buy machines, and hire workers, transforming economies from agriculture-based to industry-focused. It was crucial because it allowed entrepreneurs to invest in technology and infrastructure, fueling rapid industrial growth and urbanization. This responded to the need for more efficient production methods and the desire to produce goods on a larger scale. Today, capital remains important as it enables businesses to expand, innovate, and create jobs, affecting everyday life by providing employment opportunities and new products. For instance, a local bakery might use capital to purchase a new oven, allowing them to bake more bread and serve more customers, benefiting both the business and the community.
