Question

Which is the best description of capital as a factor of production?

O Money that investors use to invest in the stock market.
O All of the tools, machinery, buildings, capital goods, and money used to produce another good or
service.
O The money and time that is used to produce a good or service.
O All of the consumer goods that entrepreneurs use to produce capital goods.

Answer 1

Capital as a factor of production encompasses all the tools, machinery, buildings, capital goods, and money used in the production process.

Step-by-step explanation:

The best description of capital as a factor of production is:

All of the tools, machinery, buildings, capital goods, and money used to produce another good or service.

Capital refers to the physical and financial resources that are used in the production process. It includes machinery, equipment, buildings, and money. These factors of production are essential for businesses to produce goods and services efficiently.

Learn more about Capital as a factor of production