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 resources used in production, such as tools, machinery, and buildings. Stocks and bonds are financial assets, not physical capital. Natural resources are classified as land in economics. Government services, while important for businesses, are not considered capital.

As a Factor of Production, the Term Capital Includes