4. How Does Capital Add to the Productivity of Labour?

1. What Is Capital?

Capital means man-made goods used to produce other goods and services.

Examples include tools, machines, factories, and equipment.

These things help workers do their jobs more easily and quickly.

2. How Does Capital Increase Labour Productivity?

Capital helps workers produce more goods in less time.

It reduces hard physical work. It also improves speed and efficiency.

For example, a worker digging a trench with bare hands works very slowly.

But a worker using an excavator can dig the trench much faster.

The machine helps the worker complete more work in less time.

In simple words: Capital increases labour productivity by helping workers produce more in less time with less effort.

3. Conclusion

Capital makes workers more productive.

Tools and machines help them work faster and produce more goods and services.

Remember: More useful capital can help workers produce more in less time.

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