Which of the following is counted as "capital" in economics?
A)the money people have
B)the machines that workers have to work with
C)the labor force
D)the wealth people have

Question

Quizplus · Accepted Answer

Capital in economics refers to the physical assets and tools that are used in the production of goods and services. This includes machines, equipment, buildings, and infrastructure. Therefore, option B, the machines that workers have to work with, is the only option that correctly represents capital in economics. Option A, the money people have, is considered financial capital, which is not the same as physical capital. Option C, the labor force, refers to the human input in production, which is not classified as capital in economics. Option D, the wealth people have, is a broader concept that includes financial capital, physical capital, and other assets.

Which of the Following Is Counted as "Capital" in Economics