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

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BlackTom AI · Accepted Answer

Consider the concept being described: a firm builds a new factory as a form of investment. 
Option 1: the market. This choice is not accurate because building a factory is not about buying or improving the market itself; it concerns the firm's own productive assets rather than a market-level resource. 
Option 2: physical capital. This is the idea that relates to tangible assets used in production, such as factories, machinery, and equipment. Constructing a new factory directly adds to the firm's physical capital stock, enabling ongoing production capacity. 
Option 3: human capital. While human capital—skills, knowledge, and experience of workers—is crucial for productivity, a factory building is a physical asset, not a has-to-do-with workers’ capabilities. The act of erecting a factory does not in itself enhance workers’ capabilities; it expands the plant rather than the workforce’s competencies. 
Option 4: research and development. R&D involves activities to innovate or improve products and processes, typically intangible and venture-focused rather than the construction of a production facility. Building a factory is a capital investment in the plant, not an R&D expenditure. 
Thus, when a firm constructs a new factory, the primary category being enhanced is the stock of tangible productive assets—its physical capital.

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

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

查看解析

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类似问题

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

What does the term "built capital" refer to?

Which of the following best describes physical capital?

Which of the following best describes physical capital?

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Which of the following best describes physical capital?

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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.