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The production function takes the general form Y=f(K, L), where Y is the amount of output produced, K is the amount of capital stock used and L is the amount of labor used.
In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function.
He was a moral philosopher, a pioneer of political economy, and was a key figure during the Scottish Enlightenment era. He is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776).
The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford, where he was one of the first students to benefit from scholarships set up by fellow Scot, John Snell.
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