Question

The tools, skills, knowledge, and machines created and used by humans is known as A) Business B) Capital C) Land D) Money

Answer 1

Answer:

B) Capital

Explanation:

Capital consists of all man-made physical or intellectual tools in the process of capitalist production. Thus, capital tools are considered, for example, the machinery of a company and the human skill that has been trained to work in that particular activity. This is also called physical capital and human capital. The association between physical capital and human capital generates the production of goods and services in an economy.

Answer 2

Answer :

The correct answer is option B.

The tools, skills, knowledge, and machines created and used by humans is known as capital.

Explanation :

Capital is regarded to one of the four factors of the production while the other being land, labour and entrepreneurship. Capital includes all those goods which can be further used to create goods or services. Thus the machines, knowledge, skills and tools which is utilized to lead further production should be considered as capital.

Further Explanation :

Capital is considered to be vital for any economy as : Capital determines the rate of economic development in the country. Following are some functions of capital:

i. Provides for the equipment which assist the process of economic development.

ii. It further increases the stock of capital goods which increase the growth of income.

iii. It facilitates labor by equipping them to cause less delay and lead more productive results.

iv. It facilitates modernization and the development of any country by giving more technological discoveries.

v. It improves the employment opportunities of any country by facilitating the growth of production and industries.

Learn More :

Learn more about the factors of production:

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Keywords :

Factors of production, importance of capital, four factors of production, what does it mean by capital.