Any factor of production is capital if it:
A) was produced and can be used to produce other goods and services.
B) generates utility.
C) uses human effort to produce goods and services.
D) is included in financial capital.

Question

Quizplus · Accepted Answer

Capital refers to any factor of production that is produced and can be used to produce other goods and services. This includes physical capital like machinery, equipment, and buildings, as well as financial capital like money and investments. It does not refer to factors that generate utility or rely solely on human effort.

Any Factor of Production Is Capital If It