To be considered capital, a factor of production must:
A) have been produced.
B) occur naturally.
C) be part of a factory or building.
D) be a skill or talent possessed by a person.

Question

Quizplus · Accepted Answer

Capital refers to man-made resources used to produce goods and services. Therefore, for something to be considered capital, it must have been produced, such as machinery, tools, buildings, and equipment. The other options listed do not fit the definition of capital.

To Be Considered Capital, a Factor of Production Must