Multiple Choice
Which of the following are considered basic types of resources (factors of production) used by producers?
69
views
0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following do economists consider to be capital?
A
Raw materials like wood and steel
B
Labor provided by workers
C
Machinery used in a factory
D
Money held in a savings account
Verified step by step guidance1
Understand the definition of capital in economics: Capital refers to man-made resources used in the production of goods and services. These are physical assets that help produce other goods.
Evaluate each option against this definition: Raw materials like wood and steel are natural resources or inputs, not capital because they are not produced goods used to produce other goods.
Labor provided by workers is considered a factor of production but is classified as labor, not capital.
Machinery used in a factory fits the definition of capital because it is a man-made tool or equipment used to produce goods.
Money held in a savings account is a financial asset, not physical capital, so it is not considered capital in the economic sense.
Related Videos
Related Practice
