Any factor of production is capital if it:
A) was produced and can be used to produce other goods and services.
B) generates utility.
C) uses human effort to produce goods and services.
D) is included in financial capital.
Ans: A) was produced and can be used to produce other goods and services.
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To maximize its profit, the monopoly with the TR and TC curves shown in the figure above will produce
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A U.S. electronics company opens and operates a new factory in India. b. A Swiss bank buys bonds issued by a U.S. company. c. A U.S. pension fund buys bonds issued by the Japanese government. d. A French restaurant opens and operates a restaurant in New York.
Real wealth falls, interest rates rise, and the dollar appreciates as the price level
a) remains constant. b) falls slightly. c) rises. d) falls substantially.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.