Which of the following would an economist NOT classify as capital?
A) a $20 bill in a firm's petty cash drawer
B) the building in which economics students meet
C) a plumber's wrench
D) a railroad car

Question

Which of the following would an economist NOT classify as capital?  
A) a $20 bill in a firm's petty cash drawer 
B) the building in which economics students meet 
C) a plumber's wrench 
D) a railroad car

Quizplus · Accepted Answer

Capital, in economic terms, refers to assets used for the production of goods and services, such as machinery, buildings, and tools. A $20 bill, however, is considered money, not a productive asset, and therefore not classified as capital.

Which of the Following Would an Economist NOT Classify as Capital