As a factor of production,the term capital includes:
A)tools,machinery,and buildings.
B)stocks and bonds issued by corporations.
C)natural resources such as land and water.
D)services provided by the government that enable businesses to be more productive.

Question

Quizplus · Accepted Answer

Capital refers to man-made goods that are used to produce other goods and services. Tools, machinery, and buildings are examples of capital. Stocks and bonds would fall under the category of financial capital, which is not typically included in the definition of capital as a factor of production. Natural resources would fall under the category of land, which is a separate factor of production. Government services that enable businesses to be more productive would fall under the category of infrastructure or public goods, which are also not typically included in the definition of capital as a factor of production.

As a Factor of Production,the Term Capital Includes