Which of the following would an economist classify as capital?
A) 100 shares of Microsoft stock
B) a $50 bill
C) a credit card
D) a lawyer's office computer

Question

Which of the following would an economist classify as capital?  
A) 100 shares of Microsoft stock 
B) a $50 bill 
C) a credit card 
D) a lawyer's office computer

Quizplus · Accepted Answer

Capital refers to physical or human assets that can be used to produce goods and services. A lawyer's office computer is a physical asset used in the production of legal services, and therefore qualifies as capital. The other options could be classified as financial assets (Microsoft stock and $50 bill) or a financial tool (credit card), but do not qualify as capital.

Which of the Following Would an Economist Classify as Capital