Question

Of the three resources of production (land, labor, and capital), how does capital most differ from the other two? A. Capital is money. B. Capital is the resource that comes from the government's capital city. C. Capital is imported, while land and labor are domestic. D. Capital is produced by humans, while land and labor are not.

Answer 1

A. Capital is money.

More specifically, capital is things of value that can be used to generate funds in investment.

Answer 2

The correct answer is A, Capital is money.

There are three resources of production. One is Capital, second is Land and the third is Labor. All of these are important in the production of anything. Capital is the money that is used to purchase things needed in the production process and the costs associated with it. Land is the area where the production is done. And Labor is the workforce that is used to produce the product. In this question, the difference between the Capital and Land and Labor is that, Capital is the only intangible thing whereas land and labor are tangible.