Capital is the
A. flow of new equipment that a firm acquires over the course of a year.
B. amount of increase in a firm’s equipment over a year.
C. amount of money that a firm has on hand at a given time.
D. stock of plant, equipment, and other productive resources held by a firm.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. An economic model is robust if it provides results that are testable and verifiable. 2. An easy, but not very insightful, possible explanation for apparently irrational behavior is that it is rational for a people with a taste for the behavior. 3. Most economic explanations can be reduced to the idea that human behavior is primarily a matter of taste. 4. Since economists assume that people act in their own self-interest, economic analysis does not apply to situations where people behave altruistically. 5. A model that is said to be robust is one that has many details and closely mimics reality.
The returns from productive capital investment are determined by interest rates
Indicate whether the statement is true or false
Which of the following examples would most likely be part of a perfectly competitive market?
a. cotton growers b. computer companies c. shoe manufacturers d. automotive businesses
The quantity supplied of a particular good is the amount of the good that
A) households are willing to consume at each particular price. B) firms will actually end up buying at a particular price during a given time period. C) firms are willing to sell at each price during a particular time period. D) households want firms to sell at each price during a particular time period.