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Production occurs when capital hires labor to create a good or service. Production is considered the vital part of the classical political economy, which makes labor out to be the limiting factor in economic activity. It is the state's responsibility to supply the economy with labor and a means to pay for it; this fosters production.
Capital takes several forms in the classical political economy?namely physical, intellectual and human capital. Physical capital describes concrete objects that can help produce goods or services. Intellectual capital is a set of know-how that can be manifested in designs, theories, blueprints or concepts (among other things)...
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