Question

Bob, the owner of a local deli in town, needs to purchase something that economists would label as "capital" to help him produce sandwiches. Which of the following is an example of capital?
a. An additional worker
b. A meat slicer to cut ham for sandwiches
c. A new idea that automates the making of sandwiches
d. Ham for the sandwiches

Answer 1

Answer:

B). A meat slicer to cut ham for sandwiches.

Explanation:

Capital is illustrated as one of the most crucial factors of production that comprises of the assets that could be used efficiently by the labor to produce goods. Some of the examples of capital would include machinery, equipment, and tools that contribute to producing goods.

As per the given question, the 'meat slicer for cutting the ham for sandwiches' would be categorized as the capital as it exemplifies the material object(asset) that is contributing to the production of goods that would bring profit/revenue to the firm. Thus, option B is the correct answer.