Question

Capital or capital goods as recognized by economists would include all of the following except

A) Buildings
B) Machinery
C) Money
D) Labor

Answer 1

Capital goods include physical assets like buildings and machinery used in production. Money is not considered a capital good because it can't be directly used to produce goods and services. Labor is a separate factor of production and not a capital good.

Step-by-step explanation:

Amongst the options given, capital goods as recognized by economists include buildings (A), machinery (B), and other physical assets used in the production of goods and services. Money (C), however, is not considered a capital good because it cannot be used directly in the production process; it is a form of financial capital. Therefore, the correct answer is money (C), which is not a capital good. On the other hand, labor (D) involves human effort and skills, and it is also not categorized as capital goods but as another factor of production entirely.