Question

1. List at least three examples of capital as a factor of production, and explain how it is different from land. (3-6 sentences)

2. How are industrial goods different from consumer goods? Explain. (2-4 sentences)

Answer 1

1. Capital is the manufactured, artiFcial, or synthetic goods used in the production of other goods, including machinery, equipment, tools, buildings, and vehicles. Capital is the produced factor of production. This factor must be produced using other factors of production, which means that society is often faced with the choice between producing consumption goods that satisfy wants and needs and capital goods that are used for future production. 2. Industrial goods are made up of machinery, manufacturing plants and materials,and any other good or component used by other industries or Frms. Consumer goods are ready for the consumption and satisfaction of human wants,such as clothing or food