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

Question

Quizplus · Accepted Answer

Capital refers to man-made goods used in the production of other goods and services. This includes tools, machinery, and buildings. Stocks and bonds, natural resources, and government services are not considered capital.

As a Factor of Production, the Term Capital Includes