Which of the following is a capital resource?

• A. Raw cotton
• B. A factory building
• C. A truck driver
• D. A plot of farmland

Answer: (B)

Verified step by step guidance

1. Understand the definition of a capital resource in microeconomics: Capital resources are man-made goods used to produce other goods and services. They are physical assets like machinery, buildings, and tools.
2. Identify each option and classify it according to the three main factors of production: land, labor, and capital. For example, raw cotton is a natural resource (land), a truck driver represents labor, and a plot of farmland is land.
3. Recognize that a factory building is a man-made physical asset used in production, which fits the definition of a capital resource.
4. Eliminate options that do not fit the capital resource category: raw cotton (natural resource), truck driver (labor), and farmland (land).
5. Conclude that the factory building is the correct example of a capital resource because it is a physical asset used to produce goods.