Asked by Hunter Thomason on Jul 04, 2024
Verified
Which of the following is correct?
A) Money is a resource, but real capital is not.
B) Real capital is a resource, but money is not.
C) Neither money nor real capital is a resource.
D) Both money and real capital are resources.
Real Capital
Physical assets like machinery, buildings, and technology that are used in production to create value.
Resource
An economic or productive factor required to accomplish an activity, often categorized into natural resources, human resources, and capital resources.
- Comprehend the differentiation between economic assets and the significance of currency in connection to interest.
Verified Answer
FA
Fatima AqeelJul 06, 2024
Final Answer :
B
Explanation :
Real capital refers to physical assets like machinery, buildings, and equipment used in production, which are considered resources in economics. Money, however, primarily serves as a medium of exchange, a unit of account, and a store of value, and is not considered a resource in the same way, as it does not directly contribute to production.
Learning Objectives
- Comprehend the differentiation between economic assets and the significance of currency in connection to interest.