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6 February, 11:50

Which of the following correctly explain why money is not considered capital in economics?

A) Money can only be used to produce physical capital, not human capital.

B) Money can only be used to produce privately owned capital, not publicly owned capital.

C) The term capital refers to a factor of production.

D) Money is used to purchase land, labor, or capital.

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  1. 6 February, 14:48
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    Option A, B, D

    Money can only be used to produce physical capital, not human capital, Money can only be used to produce privately owned capital, not publicly owned capital and Money is used to purchase land, labor, or capital explain why money is not considered capital in economics

    Explanation:

    Money is not capital as statisticians distinguish capital because it is not a prolific source. While money can be utilized to purchase capital, it is the capital good: items such as appliances and devices, that are employed to generate goods and aids.

    Money simply promotes sales, but it is not in itself a prolific source. Capital goods are not undeviatingly traded for money, so they habitually expect factors of expense and peril to assemble and apply. This is discrete and separate from a variety of budgetary funds.
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