Define the factor of production called capital. Give three examples of capital, different from those in the chapter. Distinguish between the factor of production capital and financial capital
What will be an ideal response?
Capital is the tools, instruments, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services. Capital includes railroad engines and cars, servers, and ATMs. The factor of production "capital" is the actual good itself; "financial capital," such as stocks and bonds, are the funds that provide businesses with their financial resources which can be used to ac-quire capital goods.
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The long run outcome of the monopolistically competitive firm:
A. does not maximize profits. B. is not efficient. C. is the same as the short-run outcome. D. maximizes total surplus.
If an economy maintains a small rate of growth for a long period of time, then the size of the economy:
A. can only increase by a small amount. B. will stay nearly constant. C. can increase by a large amount. D. can never double.
The market demand is the:
A. horizontal sum of all individual demand curves in a market. B. horizontal sum of all individual prices in a market. C. sum of all individual demand curves and supply curves in a market D. vertical sum of all individual demand curves.
The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________
A) A B) B C) C D) A or B