Why Is Capital Not Considered a Primary Factor of Production

question 25

Multiple Choice

Why is capital not considered a primary factor of production?

• A)It is produced by the economic system itself.
• B)It is not a physical good.
• C)It is in fixed supply.
• D)It does not exist in all economies.
• E)None of the above.

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Definitions:

Bonds Issued

refers to the creation and sale of bonds by an issuer to investors as a form of borrowing, usually to raise capital for long-term investments.

Semiannual Interest

An interest payment made twice a year on a loan or investment.

Issuance Date

The date on which a financial instrument (e.g., bond, stock, or certificate of deposit) is issued or made available for sale.

Accrued Interest

The interest that has accumulated on a bond or loan but has not yet been paid to the lender, often recorded as a current liability on the balance sheet.