Question

As one of the factors of production/productive resources, capital can be defined as A) the goods and services a business produces. Eliminate B) the supply of labor needed to produce goods. C) the people that purchase goods and services. D) the equipment and factories needed to produce goods.

Answer 1

Hello there!

As one of the factors of production/productive resources, capital can be defined as 

D) the equipment and factories needed to produce goods produces.

Answer 2

The correct answer is D. The equipment and factories needed to produce goods.

Explanation:

Capital along with land, labor, and entrepreneurship is one of the factors of production. Capital includes all machines, technologies, and infrastructure that is required to manufacture products or to transform raw or natural materials (land) into other products that can be sell (goods). Therefore, the capital refers to all technologies or machines used to extract raw material, then the ones used during the process of manufacture and also the infrastructures required such as factories. According to this, capital can be defined as "The equipment and factories needed to produce goods".