Question

Which of these will NOT be considered as capital?

Options

• Stationery owned by a student

• Stationery owned by firm

• Stationery owned by the government

• All the three options will be considered capital

Answer 1

Stationery owned by a student

Explanation:

• Capital in economics refers to assets used to produce goods and services. It includes tools, machinery, buildings, and other resources that help generate income or production.
• Stationery owned by a student is typically used for personal use and not for generating income or production, so it is not considered capital.
• Stationery owned by a firm or the government could be used in the production process or for administrative purposes, so they would be considered capital.