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In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers, and the like.
Situated in the valley of Moravica river, Ivanjica has a predominantly hilly and mountainous terrain.
With the 1878 Congress of Berlin recognition of the independence of Principality of Serbia, King Milan I founded the Kingdom of Serbia.
In 1918, Kingdom of Yugoslavia was formed, following the World War I.
It is also known for the cultural event Nušićijada and as being the birthplace of World War II Chetnik leader, Draža Mihailović.
Following the Serbian Revolution which took place in early 19th century, and Serbian liberation from the Ottoman Empire, Ivanjica has gained the status of village in 1833, after the Prince of Serbia, Miloš Obrenović took the area.
In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function.