HISET Social Studies Practice

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Prepare for the HISET Social Studies Exam with comprehensive quizzes and practice questions. Enhance your understanding of key concepts through engaging content designed to help you succeed on test day!

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Which term refers to money that is available for investment in economic activities?

Labor
Capital
Equilibrium
Natural resources

The correct answer is: Capital

The term that refers to money available for investment in economic activities is capital. Capital is a critical component in economics, representing the financial assets or resources that businesses can use to fund their operations and growth. This can include cash, equipment, buildings, and other assets that can be utilized to generate further economic activity. In contrast, labor pertains to the human effort used in the production of goods and services, while natural resources denote the raw materials used in the production process, such as minerals, water, and forests. Equilibrium refers to a state of balance in economic contexts, particularly in supply and demand, and does not specifically relate to the availability of financial resources for investment. Understanding these distinctions clarifies the role of capital in facilitating economic activities, highlighting its importance in the broader economic system.