When an economist refers to a firm's capital, she/he is likely to be using the term to describe the:

Question

Quizplus · Accepted Answer

The term capital in economics usually refers to the stock of equipment and buildings that a firm uses in its production process. This includes machinery, tools, buildings, and other physical assets that are used to produce goods and services. While finance and equity are important for firms to have, they are not typically referred to as capital in economics. Market for final goods and services is not related to the term capital.

When an Economist Refers to a Firm's Capital, She/he Is