Question

Why do we refer to physical capital as a produced factor of production?

Answer 1

Physical capital is the stock of equipments and structures that are used to produce goods and services . These tools and machines are themselves the output from human production i.e other words , these are the human made objects used to create other goods and services. e.g buildings and tools. Physical capital is refer to as a produced factor of production because producing physical capital requires inputs in the form of human capital and that will used in future production.