In economics, capital is defined as:
A) natural resources, such as water, oil, and iron ore.
B) the number of people in the labor force.
C) all human creations used to produce goods and services.
D) the money exchanged in the underground economy.
E) the willingness of business owners to take risks.

Question

Quizplus · Accepted Answer

Capital in economics refers to all human-made goods used in the production process, including machinery, buildings, technology, and tools. This definition excludes natural resources (choice A), labor force numbers (choice B), underground economy money (choice D), and business owner risk-taking (choice E).

In Economics, Capital Is Defined As