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lawyer [7]
3 years ago
11

What is the definition of capital (one of the productive resources)?

History
1 answer:
vitfil [10]3 years ago
8 0

Answer:

The correct answer is <u>b) The equipment needed to produce goods</u>

Explanation:

While capital is usually refereed to as money that is required for investment, in terms of productive resources itself, capital is defined as all the machinery, tools and equipment which are used to make a product.

For example, in a textile factory, this can include automatic stitching machines or even boilers that power these machines.

Labor itself is NOT part of capital and is considered a separate resource. In the case of a textile factor, the labor will work with the capital to produce a good.

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