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Which of the following is counted as 'capital' in economics?

A) the money people have
B) the machines workers have to work with
C) the accumulated skills and training workers have
D) the wealth people have"

User FuePi
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8.1k points

1 Answer

6 votes

Final answer:

In economics, 'capital' refers to man-made resources like machines used in production. Option B) the machines workers have to work with is considered 'capital' and not money or accumulated skills.

Step-by-step explanation:

In economics, capital generally refers to the man-made resources used in the production of goods and services. This includes buildings, factories, tools, and machinery. Money, as a form of financial capital, is used to acquire these physical capital resources but is not considered capital in itself because it cannot directly produce other goods. Similarly, the accumulated skills and training of workers, known as human capital, is vital for economic growth and for operating technological innovations, but it is not the same as capital.

Therefore, the option that is counted as 'capital' in economics is B) the machines workers have to work with. These machines are used in production and are categorized as physical capital goods.

User Pranav Wadhwa
by
8.4k points
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