Question

Old MacDonald left the farm! She decided she wanted to open a video production business instead. She has a whole bunch of stuff at

her business that she uses to produce and sell her videos. Which of these things at Old MacDonald's business would an economist
classify as "capital?"
the field where she shoots "how to farm" videos
her employees
the camera she uses to shoot videos
the cows and chickens who star in her "how to farm" videos

Answer 1

The correct answer is C. The camera she uses to shoot videos

Step-by-step explanation:

Capital is one of the factors required to produce services and products. Moreover, capital includes all tools involved in the process of production. For example, in a bakery capital includes the ovens, because these are part of the machinery used in the process of making bakery products.

This concept covers the camera used by Old MacDonald because this is a tool she uses to create videos and obtain profits. Also, this differs from her employees, which are part of the labor, and from the field or animals, which are the natural resources.