What is the difference between "capital" and "financial capital"? Which is a factor of production?
What will be an ideal response?
"Capital" is the actual physical good, such as a factory, an assembly line, or a computer server. "Financial capital" is stocks, bonds, or money. Financial capital is used to fund the purchase of the (physical) capital. Financial capital is NOT a factor of production because it is not used to help produce goods and services. Capital, however, is a factor of production because capital is used to help produce goods and services.
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
Which of the following is an economic goal of a nation?
a. High inflation b. High mortality rate c. Trade deficit d. Low unemployment
According to the? text, the term? "Eurosclerosis" refers to
a. The cumulative effects of high productivity growth in Europe.
b. Stagnant economic growth in Europe.
c. A long period of higher growth rates among European countries than the growth rates of the United rates.
d. The differing views about the growth rates of European countries.
The Consumer Price Index (CPI) is a
A. statistical measure of average prices using annually updated weights based on surveys of consumer spending. B. price index measuring the changes in prices of all new goods and services produced in the economy. C. statistical measure of a weighted average of prices of a specific set of goods and services purchased by consumers in urban areas. D. statistical measure of a weighted average of prices of commodities that firms produce and sell.