Question

In economics, the term "capital" refers to:


the money in your bank account.


investment in shares.


buildings and equipment.


mineral resources.


consumer goods.

Answer 1

In economics, the term "capital" primarily refers to **buildings and equipment**. Capital comprises the tools, machinery, and infrastructure used to produce goods and services. It is one of the factors of production, along with land, labor, and entrepreneurship. While it can also encompass financial assets like money and investments (e.g., investment in shares), the specific economic definition is more focused on physical assets that contribute to production processes.