The factor of production called "capital" refers to:
A) manufactured goods that are used to produce new goods.
B) any piece of raw material that is used to produce goods and services.
C) any input that's not a human being or dirt.
D) the amount of money a firm has access in order to run its business.

Question

Quizplus · Accepted Answer

Capital refers to manufactured goods that are used to produce new goods. This can include machinery, tools, equipment, and buildings. It is one of the three main factors of production, alongside land and labor. Raw materials (such as wood, iron, or oil) are not considered capital, although they may be used alongside capital to produce goods. Money is also not considered capital, although it may be used to purchase capital goods.

The Factor of Production Called "Capital" Refers To