Question
Please help I don't want to fail Why is capital considered a factor of production? O Capital can be used to start new businesses. Capital offers natural resources as raw materials. O Capital includes the workforce that produces goods. Capital includes the workforce that provides services.
Answer
Capital is considered a factor of production because it is one of the resources required to produce goods or services. Capital can be used to acquire raw materials, purchase equipment, and pay for labor, and without it, production may not be possible.
- Q: What is capital? A: Capital is defined as the goods or money that a business can use to produce goods or more money.
- Q: What are the factors of production? A: The factors of production include land, labor, capital, and entrepreneurship.
- Q: How is capital a factor of production? A: Capital is considered a factor of production because it is one of the resources required to produce goods or services. Capital can be used to acquire raw materials, purchase equipment, and pay for labor, and without it, production may not be possible.