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AssignmentMultiple Choice

The Three Questions of Economics

Question 1 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Which part of Suarez Farms represents the capital invested in the business?

Answer
A
fifty acres of farmland on which crops grow
B
farming skills of the Suarez family and hired workers
C
farm equipment the Suarez family owns
D
leadership of the farm’s owners

Explanation

Capital means human-made resources used to produce goods and services. The farm equipment the Suarez family owns is a resource invested in farming, so the correct choice is “farm equipment the Suarez family owns.” Farmland is a natural resource, while workers’ skills and the owners’ leadership are not capital equipment.

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