Question

Capital is a ________ factor of production. (real / artificial / natural / free), Fill in the blank with appropriate alternative given in the bracket.

Answer 1

Capital is a real factor of production

Answer 2

Answer:

Artificial

Explanation:

Capital is an artificial factor of production

Capital usually relates to the financial wealth, particularly when starting or maintaining a company. Capital is one of the four production factors in classical economics along with land, work and organization.

All the capital goods or resources used in manufacturing are included in the total capital. Since capital is not a gift of nature and is a man-made manufacturing factor, it is considered an artificial manufacturing factor.