[Solved] Which of the following best defines 'Capital' as a factor of production? — Ans: Man-made goods used to produce other goods | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following best defines 'Capital' as a factor of production?

ANatural resources like land and minerals

BHuman effort in production

CMoney used for buying raw materials

DMan-made goods used to produce other goods

Step-by-Step Solution

Step 1: Recall the definition of capital in economics
Capital refers to physical assets created by humans to aid production.
Step 2: Analyze options
Man-made goods like machinery and tools are capital. Natural resources are land, human effort is labour, and money is not capital but a financial medium.
Final Answer:
Man-made goods used to produce other goods → Option D
Quick Check:
Capital = man-made productive goods ✅

Quick Trick: Do not confuse capital with money.

Common Mistakes:

MISTAKES

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