Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.a drill press in your local machine shop

Question

Quizplus · Accepted Answer

A drill press in a machine shop is an example of physical capital, which is a type of capital that refers to tools, machinery, and other equipment used in the production of goods and services. Money, stocks, and bonds are financial assets and do not fall under the category of physical capital.

Capital Is a Factor of Production