Capital is _______________
A. the crucial element in every economic system.
B. the key to every society's standard of living.
C. the result from savings.
D. All of these statements describe capital.
D. All of these statements describe capital.
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The curvature of an economy's production possibilities curve represents:
A) an increasing marginal cost of producing both goods. B) an increasing opportunity cost of producing each good. C) diminishing marginal returns to inputs. D) increasing terms of trade between both goods.
Which of the following pairs of goods has a negative cross-price elasticity?
A) Pens and paper notebooks B) Nokia and Samsung cell phones C) Compact Disks (CDs) and electronic music files D) Motorcycles and typewriters
When private benefits equal social benefits, it means that:
A. positive externalities are present in the market. B. negative externalities are present in the market. C. positive externalities are not present in the market. D. no externality of any kind is present in the market.
In an efficient economy,
a. no one could be made better off by a change in the way goods are allocated b. revenue for all firms is maximized c. a change in the way goods are allocated could make someone worse off d. goods are allocated fairly among individuals e. no one would be made worse off if there is a change in the way goods are allocated