Capital includes which of the following?

Capital includes which of the following?

• A. Natural resources
• B. Tools and money
• C. Labor
• D. Goods produced

Answer: (B)

Capital refers to the man-made means of production that enable goods and services to be created. This includes the tools, machinery, buildings, and other equipment workers use, as well as money that funds investment in those resources. These are distinct from natural resources (land and minerals) and from labor (the human effort involved in production), and they’re also distinct from the final goods themselves, which are the outputs produced. Tools and money fit best because they directly enable and finance the production process, whereas natural resources are the inputs nature provides, and labor is the human effort involved.

Capital refers to the man-made means of production that enable goods and services to be created. This includes the tools, machinery, buildings, and other equipment workers use, as well as money that funds investment in those resources. These are distinct from natural resources (land and minerals) and from labor (the human effort involved in production), and they’re also distinct from the final goods themselves, which are the outputs produced. Tools and money fit best because they directly enable and finance the production process, whereas natural resources are the inputs nature provides, and labor is the human effort involved.