Which of the following would an economist classify as capital?
A) a new deposit of natural gas
B) a government savings bond
C) a police car
D) a $100 traveller's check

Question

Quizplus · Accepted Answer

A police car is classified as capital because it is a durable good used in the production of goods and services, in this case, public safety. Natural gas is considered a natural resource, a government savings bond and a traveller's check are financial assets, not physical capital.

Which of the Following Would an Economist Classify as Capital