Final answer:
The factor of production that encompasses man-made tools, machinery, buildings, and equipment needed for producing goods and services is called capital, or capital goods. It is one of the essential resources that businesses use in the process of production.
Step-by-step explanation:
The factor of production that refers to man-made objects like tools, machinery, buildings, and equipment needed for production is known as capital, or capital goods. These are essential components used by businesses to produce goods and services, and they include both the results of production, such as a finished bulldozer, and the resources used in production, like that same bulldozer being used on a construction site. Factors of production are the different types of resources employed in the creation of goods and services, which include not only capital but also labor, materials, and sometimes entrepreneurship.