Since the end of World War II, manufacturing firms in the United States and in Europe have been moving farther and farther outside of central cities. At the same time, firms in finance, insurance, and other parts of the service sector have been locating near downtown areas in tall buildings. What kinds of buildings represent substitution of capital for land? A. Skyscrapers. B. Government buildings. C. Shipping facilities. D. Factories.

A. Skyscrapers

Explanation:

The plain implication and meaning of substituting capital for land is the building of skyscrapers or very tall buildings especially to house service providing firms. These skyscrapers actually represent the concentration of both labour and capital on a piece of land.

Furthermore, buildings most especially of offices, finance, insurance and advertising firms most especially in city centers represent the substitution of capital for land. This is especially so because these offices and businesses usually located in the skyscrapers earlier mentioned are not manufacturing plants or buildings and hence, they are not involved in the production of goods that require capital.

The land is therefore acquired to provide services to people which can not be accomplished by the production of goods.

Therefore, the building of skyscrapers represent the substitution of capital for land most especially for the service sector further pushing the manufacturing buildings farther out of the central cities.