What is the distinction between capital and the services of capital?
What will be an ideal response?
Capital is the actual tools, instruments, machines, buildings, and constructions that have been produced in the past and that businesses now use to produce goods and services. Capital services are the services of the unit of capital. For example, a copy machine at a local Quik Print is capital but the copying performed by the machine is the service of that particular unit of capital.
You might also like to view...
Barter requires a double coincidence of wants. This means that:
a. at least two traders must demand a commodity. b. any two traders involved in a transaction must have money. c. each trader must demand at least two commodities. d. either of the two traders involved in a transaction must have money. e. when two traders are involved in a transaction each trader must want what the other has to offer.
The president of each regional Federal Reserve Bank is appointed by
a. the U.S. president with the approval of the Senate. b. the Board of Governors. c. the voting members of the Federal Open Market Committee. d. the board of directors of that regional Federal Reserve Bank.
An Iowa corn producer who has studied economics will desire to ____________________
Fill in the blank(s) with the appropriate word(s)
How do investment in technology and investment in capital differ?
A. They have different effects on output because of the positive externalities associated with investments in technology. B. They have different effects on output because of the positive externalities associated with investments in capital. C. They have similar effects on output so they have no important differences from an economic point of view. D. They have the same effects on output but investments in technology are much more closely tied to the level of saving than investments in capital.