What Are Capital Resources in Economics?

Capital resources are assets that are used to make other goods and services. Examples of capital resources include tools, buildings, machinery and equipment. Typically, any good that is used to produce other goods is classified as a capital resource.

In any country, increasing productivity is the key to attaining economic growth and improving the living standards of people. A country that invests in improving and acquisition of the capital resources stands a good chance of boosting its productivity. Countries must forgo current consumption of consumer goods to meet the demands of capital resources. Money is not considered a capital resource because it is a medium used in acquiring capital resources.