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Multiple Choice
Which of the following is an example of a capital input?
A
Raw cotton
B
A farm worker
C
A factory building
D
Land used for agriculture
Verified step by step guidance
1
Understand the definition of capital input in microeconomics: Capital inputs are man-made resources used in the production of goods and services, such as machinery, buildings, and equipment.
Identify each option and classify it according to the three main factors of production: land, labor, and capital.
Raw cotton is a natural resource, so it is classified as land (natural resource input).
A farm worker represents human effort, so it is classified as labor input.
A factory building is a man-made physical asset used in production, so it is classified as capital input.
Land used for agriculture is a natural resource, so it is classified as land input.