When classifying factors of production, capital refers to:
A) stocks, bonds, and money
B) machinery and equipment to produce goods and services
C) the financial payments by an entrepreneur to start a business.
D) all of the above

Question

Quizplus · Accepted Answer

Capital, in the context of factors of production, specifically refers to the physical assets such as machinery and equipment used in the production of goods and services. Stocks, bonds, and financial payments are considered financial capital, not physical capital.

When Classifying Factors of Production, Capital Refers To