Final answer:
A single piece of equipment exceeding $5,000 with a life span longer than a year is known as a capital asset, which is a durable, high-value item used in production and can be repaired instead of replaced, promoting environmental sustainability.
Step-by-step explanation:
The item described, which is costly (exceeding $5,000), has a long lifespan (over a year), and is purchased for long-term use in producing goods or services, would be best termed as a capital asset. Capital assets are substantial in nature and contribute significantly to the productive capacity of a business. Unlike consumables, which are used up relatively quickly in the process of production, capital assets such as machinery, vehicles, or large pieces of equipment sustain their value over time and can even be resold.
In the context of environmental sustainability, capital assets may also be preferred over disposable items because they are often made with high-quality goods and promote craftsmanship. Long-lasting capital goods enable businesses to repair parts instead of disposing of the entire unit, leading to reduced waste and an emphasis on durability and repairability. This aligns with economic expectations where durable goods such as cars and refrigerators have a significant share of the economy, demonstrating their long-term value beyond immediate consumption.