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JAMB Economics 1991 Question 35

Question 35

Theory of Production

The term 'Stock of Capital' means

  1. A.amount of money necessary to start a business
  2. B.total amount receivable by all factors of production
  3. C.amount of equipment plant and inventory existing at a time
  4. D.total amount available for economic development
Show the answer and explanation

Answer: C (amount of equipment plant and inventory existing at a time)

Explanation

The capital stock is the quantity of man-made productive goods (machines, buildings, stocks of goods) in existence at a point in time.