Asked by Grace Nance on May 12, 2024
Verified
Which of the following items used to produce a product is a capital item?
A) Raw materials
B) Land
C) Machinery
D) Labor
Capital Item
Long-term assets or investments used in the production of goods and services, such as buildings, machinery, and equipment.
Machinery
Machines collectively or a system of devices that operate together to perform a particular task.
- Identify the differences between valid and invalid statements concerning economic theories and phenomena.
Verified Answer
NC
Neisy CullerMay 19, 2024
Final Answer :
C
Explanation :
Machinery is a capital item because it is a long-term asset used in the production process. Raw materials and labor are considered variable costs, and land is a fixed asset.
Learning Objectives
- Identify the differences between valid and invalid statements concerning economic theories and phenomena.