Capital as a Factor of Production

Steps:

• Recall the four factors of production: land, labor, capital, and entrepreneurship.
• Define capital as physical assets like buildings and equipment used to create goods.
• Examine options for matches to physical capital examples.
• Select the option describing a tangible production tool.

Why C is correct:

• Capital is defined in economics as man-made physical resources, such as factories, that aid production processes.

Why the others are wrong:

• A describes entrepreneurship, the organizing factor.
• B refers to energy, an input but not a primary factor of production.
• D represents financial capital, not the physical capital in production theory.

Final answer: C