An example of capital is:
A) cash.
B) a factory building.
C) money in a checking account.
D) the existing state of technology.

Question

Quizplus · Accepted Answer

Capital refers to physical assets, such as machinery, equipment, and buildings that are used to produce goods or services. Option B, a factory building, best reflects this definition of capital. Option A (cash) is a financial asset, not a physical asset, and is not used in production. Option C (money in a checking account) is a financial asset and not considered capital. Option D (the existing state of technology) is an input in production, but is typically not considered capital on its own.

An Example of Capital Is