Question

in the production of loaves of bread, which best represents the factor of capital?
A. The flour used in the dough
B. The retailer who sells the bread
C. The oven used to bake the bread
D. The worker who kneaded the dough

Answer 1

The oven that is used to bake the bread serves as a symbol of the capital factor in the manufacture of loaves of bread.

Define capital.

Tools and infrastructure are examples of capital goods, or man-made resources, which are a type of component of production used in the production of goods and services.

The third element of manufacturing is capital. Think of capital as the machinery, facilities, and other resources that people use to create goods and services. Examples of capital include things like hammers, forklifts, conveyer belts, computers, and delivery vehicles. Fundamental facts of a market or economy, known as economic factors, have an impact on how successfully businesses operate.

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