To the economist, productive capital is defined as:

Question

Quizplus · Accepted Answer

Productive capital in economics refers to tangible assets used in the production process, such as buildings, equipment, and inventories. These assets are directly involved in creating goods and services. Stocks, bonds, and liquid assets (choice C) are financial capital rather than productive capital. Residential housing (choice A) is not typically considered productive capital in an economic sense, as it is not used to produce goods or services. Choice D is incorrect because productive capital specifically includes tangible assets like buildings and equipment, not just abstract nonhuman factors.

To the Economist, Productive Capital Is Defined As