In economics, the stock of resources that are used to produce other goods now and in the future. In classical economics the three factors of production are capital, labour, and land. Capital embodies the man-made resources, which include the buildings, plant, equipment, and inventories created by all three factors. In this sense, capital goods may be contrasted with consumer goods.
The creation of capital goods means that consumption is forgone, resulting in saving. The flow of saving becomes a flow of investment. Expenditures on education and training are often referred to as investment in human capital (&see; Gary S. Becker). Financial capital is the term given to the stocks and bonds issued in order to finance the acquisition of capital goods.
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