As a Factor of Production, the Term Capital Includes

question 24

Multiple Choice

As a factor of production, the term capital includes:

• A) stocks and bonds issued by corporations.
• B) natural resources such as land and water.
• C) tools, machinery, and buildings.
• D) services provided by the government that enable businesses to be more productive.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which bears no relation to its market value.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership interest in a company.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share of the company's profits through dividends.

Cumulative Nonparticipating Preferred Stock

A type of preferred stock that accumulates unpaid dividends but does not have a right to share in the company's earnings beyond the agreed rate.