An example of capital is

Question

BlackTom AI · Accepted Answer

In economics, 'capital' refers to assets that are used to produce other goods and services, i.e., capital goods. 
Option a: money in a checking account. This is a liquid financial asset used for transactions, not a capital good used in production. 
Option b: cash. Like money in a checking account, cash is a liquid financial asset and does not directly enable the production of goods and services as a capital good. 
Option c: a factory building. This is a classic example of physical capital (a capital good) that enables production, machinery, and facilities used to create output over time. 
Option d: flour used to make bread. This is an input or raw material, not a capital good; it’s a part of the operating inputs. 
Option e: a financial asset like a stock or a bond. These are financial assets representing claims or ownership, not physical capital goods used in production. 
Therefore, the only option that fits the definition of capital as a production-capable asset is c. a factory building.

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An example of capital is

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Academic Courses Test#1

An example of capital is

查看解析

登录即可查看完整答案

类似问题

The equipment and structures available to produce goods and services are called

What does the term "built capital" refer to?

When a firm builds a new factory, this is an example of an investment in

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Which of the following best describes physical capital?

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Which of the following best describes physical capital?

Workers in ________ countries have ________ to work with than do workers in low income countries.

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Workers in countries have to work with than do workers in low income countries.