In economics,which of the following is the best example of capital?
A) Money held in a checking account.
B) A computer used by a lawyer to prepare legal documents.
C) Investment in training for employees in an accounting firm.
D) The executive producer of a new adventure movie.

Question

Quizplus · Accepted Answer

Capital refers to goods that are used in the production of other goods and services. The computer used by a lawyer to prepare legal documents is an example of capital because it is a tool used to produce legal services for clients. Money held in a checking account is not capital because it is not used directly in the production process. Investment in training for employees in an accounting firm is an investment in human capital, which is a type of capital, but it is not the best example in this list. The executive producer of a new adventure movie is not an example of capital because it is a person, not a good used in production.

In Economics,which of the Following Is the Best Example of Capital