GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the money or cash on hand that a business has at their disposal
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all the equipment used by human labour in the process of production
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all the equipment used when to create goods and services for the consumers
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the resources required to produce goods and services for consumers
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Detailed explanation-1: -Capital refers to all manmade resources used in the production process. It is a produced factor of production. It includes factories, machinery, tools, equipment, raw materials, wealth etc. The payment for capital is interest.
Detailed explanation-2: -The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans. Capital differs based on the worker and the type of work being done.
Detailed explanation-3: -Labor is the human effort that can be applied to the production of goods and services. People who are employed or would like to be are considered part of the labor available to the economy. Capital is a factor of production that has been produced for use in the production of other goods and services.
Detailed explanation-4: -Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.
Detailed explanation-5: -Human capital: The knowledge and skills that workers acquire through education, training and experience. Note that human capital, like physical capital, is a human-made or produced factor of production.