For a factor of production to be called capital it must:
A) be produced.
B) occur in the natural environment.
C) be a part of human skill.
D) be a result of a stock issue.
Ans: A) be produced.
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Hyperinflation is defined as
A) declining inflation rates. B) rising but low inflation rates. C) very high inflation rates. D) very low inflation rates.
The Occupational Safety and Health Administration (OSHA) attempts to stop safety violations in business through inspections and fines. Though workers are supposed to earn a premium wage for working in more risky environment, the OSHA inspections may be a good idea because
A. employees may already understand the risks that they are exposed to on the job. B. there are never any societal costs or externalities to dangerous working conditions. C. employees might not have good information about the level of danger. D. inspections and fines may raise the cost of production significantly.
The long-term funding that is necessary for the acquisition of fixed assets is called
a. capital budgeting b. capital spending c. capital d. net spending e. none of these
The majority of U.S. imports and exports involve: