Answer :
Final answer:
An economist would classify the Carpenter’s hammer drill as capital because it is a tool used in the production process. Option D is correct.
Explanation:
Capital refers to assets that are used in the production of goods and services. In this context, an economist would classify the Carpenter’s hammer drill as capital because it is a tool used in the carpentry business. In this case, the carpenter's hammer drill would be considered capital because it is a tool that could be used to produce a product or a service.
However, the other options like 100 shares of Microsoft stock, $100 bill and $1 million profit are all examples of financial assets, not capital in economic terms.While the $100 bill is a form of money, it is not considered capital because it is not directly involved in the production process.
Similarly, the 100 shares of Microsoft stock and the $1 million profit are financial assets and not physical capital. Option D is correct.
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