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15 February, 12:45

The term capital, as used by economists, refers to A. money B. the physical space in which production occurs C. the time allocated to producing goods and services D. financial securities such as stocks and bonds E. machinery and equipment that is not used up during the production process

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  1. 15 February, 16:36
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    The correct answer is option E.

    Explanation:

    The term capital refers to the machinery and equipment that are used to produce goods and services. These things are long lasting and are not exhausted in the production process.

    It is one of the four factors of production and essential for production of goods and services. It is already produced durable good.

    Financial securities such as stocks and bonds are financial capital and are different from capital goods or capital assets.
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