You and a friend are designing and selling artisan smartphone covers. The covers are decorated with tiny manufactured rhinestones. In terms of factors of production, what are the manufactured rhinestones?

1. Capital

2. Entrepreneurship

3. Labor

4. Land

1. Capital

Explanation:

Capital refers to the resources that are used to generate value. This, through the manufacture of other goods or services or by obtaining profits or profits on the possession or sale of securities.

Capital is one of the four factors of production along with land, labor and technology. It is characterized by understanding all durable goods that are destined to the manufacture of other goods or services. Thus, for example, an oven is part of the capital of a baker since he uses it to cook bread (another good) and the services he delivers will last for several years.

To produce goods or services, capital must be combined with other productive factors. The precise combination will depend on the technology used and the characteristics of the good or service produced.

Capital increases the productivity of the other productive factors. However, if capital remains fixed and the rest of the factors increase, the productivity increase will be decreasing (marginal productivity law decreasing).

Capital also refers to the financial resources that are invested in a given project for manufacturing or selling services. In addition, interest gains or other financial gains are also considered capital