Workers at the Amalgamated Widget Corporation's factory use a machine to turn sheets of aluminum into widgets.Which element of production at the factory is capital?

Question

Quizplus · Accepted Answer

Capital refers to man-made resources, such as tools and equipment, used in production. In this case, the machine used to turn sheets of aluminum into widgets is the capital element of production. Choices A, B, and E are not capital elements as they refer to human resources, the company as a legal entity, and the product being produced, respectively. Choice D (the factory building) could also be considered a capital element, but based on the context given, it is not as directly related to the production process as the press(machine).

Workers at the Amalgamated Widget Corporation's Factory Use a Machine