Which of the following best defines capital as a factor of production?
A) The gifts of nature that businesses use to produce goods and services.
B) The knowledge and skills that people obtain from education and use in production of goods and services.
C) Financial assets used by businesses.
D) Instruments, machines, and buildings used in production.

Question

Quizplus · Accepted Answer

Capital refers to the physical tools, machinery, and buildings that businesses use in the production of goods and services.

Which of the Following Best Defines Capital as a Factor