In economics, what is the definition of capital?
A) natural resources, such as water, oil, and iron ore
B) the natural, unskilled abilities of people
C) the buildings, equipment, and human skills used to produce goods and services
D) money and other financial assets

Question

In economics, what is the definition of capital?  
A) natural resources, such as water, oil, and iron ore 
B) the natural, unskilled abilities of people 
C) the buildings, equipment, and human skills used to produce goods and services 
D) money and other financial assets

Quizplus · Accepted Answer

Capital in economics refers to the assets such as buildings, machinery, equipment, and human skills used to produce goods and services. It is a factor of production that is distinct from natural resources (A) and human capital (B), which refers to the knowledge, skills, and education of individuals. While money and financial assets (D) are a form of capital, they are not the only type and do not encompass the entirety of capital in economics.

In Economics, What Is the Definition of Capital