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A nation's supply of capital refers to a. common stocks and corporate bonds b. financial wealth...

A nation's supply of capital refers to

a. common stocks and corporate bonds

b. financial wealth

c. production equipment

d. the size of its labor force

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Answer #1

Since there are four factor of production in the economy and these are land, labor, capital and entrepreneur. The total cost of production are determined by price of ingredient, productivity of inputs and inputs prices.

The supply of capital are those tools and machinery that are used for production of goods and services.

Hence it can be said that A nation’s supply of capital refers to production equipment.

Financial wealth and stocks and bonds are also not part of capital. Labor force is human capital and not a capital.

Hence option c is the correct answer.

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