Capital Is

question 75

Multiple Choice

Capital is

• A)the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services.
• B)financial wealth.
• C)the sum of investment and government expenditure on goods.
• D)net investment.
• E)gross investment.

---

Definitions:

Materials

Raw inputs or supplies used in the manufacturing process to produce goods or are consumed during the service delivery.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Period Costs

Costs that are expensed in the period they are incurred and are not directly tied to the production of goods or services, such as administrative expenses.

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs directly associated with the production of goods or services.