As a factor of production, the term capital includes:
A)stocks and bonds issued by corporations.
B) natural resources such as land and water.
C)tools, machinery, and buildings.
D)services provided by the government that enable businesses to be more productive.

Question

Quizplus · Accepted Answer

Capital refers to physical goods such as tools, machinery, and buildings that are used to produce other goods and services. Stocks and bonds are not considered capital in economics. Natural resources are classified as land, not capital. While government services may increase business productivity, they are not considered capital.

As a Factor of Production, the Term Capital Includes