How does the price of capital tend to change during a boom? During a recession?

Q: What correlation lies between productivity and the standard of living?

A: The amount of goods and services produced by the average worker in an hour of work is referred to as…

Q: Explain how the recent events/news might translate into a good investment opportunity.

A: The globe is becoming more and more interconnected, it seems. Anyone who watches or reads financial…

Q: Define the concept of rate of return on investment?

A: Rate of return on investment measures the net gain or loss of an investment over a period of time.…

Q: What is Paid-in capital?

A: In exchange for stock, the shareholder gives a full amount of cash or asset to the company is known…

Q: how do businesses adapt to periods of contraction and expansion?

A: The expansion period is referred to as the development period, takes place as the economy expands…

Q: Explain the term capital in depth

A: Companies employ capital to fund the continuous production of goods and services in order to…

Q: What is Adam Smith’s view on “accumulation of wealth”?   What does he say “must be done with the…

A: According to adam smith, the needs of an individual lead to a self-interest behavior that creates…

Q: What do you mean by capital loss. Write a brief answer

A: A capital loss is said to occur when the actual value of a capital asset, such as an investment or…

Q: What does capital intensive require?

A: The technique of production used to produce the goods and services depends upon the type of goods…

Q: What is gross capital formation reflecting in terms of GDP of a country? What it indicates when the…

A: Gross domestic product is the total market  value of of goods that is produced domestically during…

Q: what is the interest rate? What is its impact on economic growth?Interpret the chart below.

A: Interest rate is the price paid on money. There may be negative or positive economic growth,due to…

Q: How does competition between capitals necessitate accumulation?

A: Capital accumulation (also termed the accumulation of capital) powers that further the pursuit of…

Q: Distinguish between investment and capital?

A: Distinguish between investment and capital? Answer: Capital refers to the sources of funds, it may…

Q: how money contributes to economic growth and\or development? If there is no money will society find…

A: Economic Development is the growth of real factors of production such as capital, labor, technology,…

Q: Explain the difference between "capital", "human capital", and "financial capital"?

A: Entrepreneur is responsible for the movement of enterprise. Entrepreneur is geographically as well…

Q: What are the possible sources of capital

A: In an economy, there is huge differences in the activities of small businesses and large businesses…

Q: Explain why the cycle of productive capital represents the constant renewal of capital-value, as…

A: Individual capital has always started its journey in monetary form. The entire movement is boosted…

Q: Define the term Compound Growth?

A: Answer - Compound Growth - It average growth rate for an investment . Here investment will be multi…

Q: How does the price of capital tend to change during an economic boom? During a recession?

A: Contraction Period: The term contraction period refers to the period of economic slowdown or the…

Q: What is the relevance of productive and allocative efficiency to the growth process?

A: Economic efficiency refers to the state in which all the resources are optimally allocated to serve…

Q: What is Capital in terms of business?

A: The use of the word 'capital' in business is often different from the colloquial usage of the word.…

Q: What is the opportunity cost to the society of investing in capital?

A: Opportunity cost is nothing but foregoing opportunity of a project when other project is chosen.

Q: How is a steady state level of capital determined mathematically? Can use graphs to aid in…

A: The steady level of capital is an important concept of Solow model. The model was developed by…

Q: Explain why a university degree can be treated as a form of capital.

A: Human Capital is a measure of education, skills, attributes and capacity of labour which affect the…

Q: Discuss why financial markets are important to a healthy economy and how they contribute to economic…

A: A business is a part of an economic system that has 2 main sectors- households that saves funds and…

Q: Why is there a trade-off between the amount of consumption that people can enjoy today and the…

A: Disposable income is the income that is left with households for consumption and savings purposes.…

Q: What is the opportunity cost of investing in a physical capital?

A: According the Neo-classical theory of economics with respect to factors of production there are…

Q: In what way is a college degree a form of capital?

A: ‘Capital’ refers to the assets(which include plants, equipment,  physical tool etc) which…

Q: What Is Capital Equipment?

A: Capital equipments are capital goods which are used by firms to produce other goods and services,…

Q: the limitations of capital accumulation, and how it leaves a significant part ofeconomic growth…

A: The capital accumulation implies the increase in the amount of capital in a nation which leads to…

Q: What is the meaning of capital formation in economics, write the detailed note about capital…

A: