Capital, in economics, includes which of the following?

• A. Raw materials
• B. Tools and money
• C. Labor
• D. End products

Answer: (B)

Capital in economics means the man-made resources used to produce goods and services. This includes physical capital like tools, machinery, buildings, and infrastructure, as well as financial capital such as cash and funds that finance investment. These assets support production over time and boost productivity.

Raw materials are natural resources that go into production but are consumed in the process, not used to produce more goods with the same asset. Labor is the human effort involved in making goods and services. End products are the final goods themselves—the output of production, not the inputs used to create them. That’s why tools and money best fit what economists mean by capital.