<P> Austrian School economist Eugen von Böhm - Bawerk maintained that capital intensity was measured by the roundaboutness of production processes . Since capital is defined by him as being goods of higher - order, or goods used to produce consumer goods, and derived their value from them, being future goods . </P> <P> Human development theory describes human capital as being composed of distinct social, imitative and creative elements: </P> <Ul> <Li> Social capital is the value of network trusting relationships between individuals in an economy . </Li> <Li> Individual capital, which is inherent in persons, protected by societies, and trades labour for trust or money . Close parallel concepts are "talent", "ingenuity", "leadership", "trained bodies", or "innate skills" that cannot reliably be reproduced by using any combination of any of the others above . In traditional economic analysis individual capital is more usually called labour . </Li> <Li> Instructional capital in the academic sense is clearly separate from either individual persons or social bonds between them . </Li> </Ul> <Li> Social capital is the value of network trusting relationships between individuals in an economy . </Li>

What is the difference between labour and capital in economics