Capital is a factor of production. Which of the following is an example of capital?
i) $1,000 in money
Ii) 100 shares of Microsoft stock
Iii) $10,000 in bonds issued by General Motors
Iv) A drill press in your local engineering firm

Question

Capital is a factor of production. Which of the following is an example of capital? 
i) $1,000 in money
Ii) 100 shares of Microsoft stock
Iii) $10,000 in bonds issued by General Motors
Iv) A drill press in your local engineering firm

Quizplus · Accepted Answer

Capital refers to physical equipment and machinery used in production. Therefore, the only example of capital from the given options is the drill press in the local engineering firm (iv). The other options are financial assets and do not qualify as capital.

Capital Is a Factor of Production