Which of the following best defines capital as a factor of production?
A) the gifts of nature that businesses use to produce goods and services
B) the knowledge and skills that people obtain from education and use in production of goods and services
C) financial assets used by businesses
D) instruments, machines, and buildings used in production

Question

Quizplus · Accepted Answer

Capital, as a factor of production, refers to the physical tools, equipment, machinery, and buildings that are used in the production process to create goods and services. This does not include natural resources (A), human capital (B), or financial assets (C), but rather the tangible assets that directly contribute to the production process.

Which of the Following Best Defines Capital as a Factor