EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 6SPPA
To determine
To explain:
The definition of capital with three examples, and also explain the difference between production capital and financial capital.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What are the four basic factors of production? Provide at least one example of each factor of production and discuss how that factor is used economically.
Which of the following is an example of capital as a factor of production?
Group of answer choices
Stocks
Bonds
money
Equipment used by businesses
Which of the following statements about factors of production is false
Ahe term 'factors of production' is another term for resources.
The factor of production termed labor means human resources.
The factor or production termed land means natural resources.
The factor of production termed capital means the money which the owners of firms need
In order to set their firms up X
Chapter 2 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 2 - Prob. 1SPPACh. 2 - Prob. 2SPPACh. 2 - Prob. 3SPPACh. 2 - Prob. 4SPPACh. 2 - Prob. 5SPPACh. 2 - Prob. 6SPPACh. 2 - Prob. 7SPPACh. 2 - Prob. 8SPPACh. 2 - Prob. 9SPPACh. 2 - Prob. 10SPPA
Ch. 2 - Prob. 1IAPACh. 2 - Prob. 2IAPACh. 2 - Prob. 3IAPACh. 2 - Prob. 4IAPACh. 2 - Prob. 5IAPACh. 2 - Prob. 6IAPACh. 2 - Prob. 7IAPACh. 2 - Prob. 8IAPACh. 2 - Prob. 9IAPACh. 2 - Prob. 10IAPACh. 2 - Prob. 11IAPACh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Which of the following statements about factors of production is false The term 'factors of production' is another term for resources. The factor of production termed labor means human resources. The factor or production termed land means natural resources.Y The factor of production termed capital means the money which the owners of firms need in order to set their firms up Xarrow_forwardWhich of the following best defines "capital" as a factor of production? Financial assets used by businesses. The money that the owners of a business reinvest from their profits. Instruments, machines, and buildings used in production. The knowledge and skills that people use in production of goods and services.arrow_forward9) In economics, the term plhysical capital A) refers to funds used by businesses to acquire goods and services. B) refers to all manufactured resources used for production. C) refers to the process of raising funds through the stock market. D) defines the stock of merchandise already produced.arrow_forward
- According to economists, which one of the following is considered to be capital? A. a pair of stockings B. a bulldozer C. a share of IBM stock D. a savings accountarrow_forwardDescribe the five factors of production.arrow_forward9) In economics, the term plysical capital A) refers to funds used by businesses to acquire goods and services. B) refers to all manufactured resources used for production. C) refers to the process of raising fands through the stock market. D) defines the stock of merchandise already produced.arrow_forward
- In the circular-flow diagram, which of the following represents a factor market transaction? A) purchase of a new t.v. B) Expenditure on a new pair of pants. C) Payment for a haircut. D) Payment for raw materieals in the production of bikes.arrow_forwardWhat is a labor abundant economy? A higher level of capital per worker No labor input in the production system Production that require a high level of capital Production that requires a low level of capitalarrow_forwardWhich of the following is/are examples of physical capital (K)? A. Pine trees in the great northwestern US forests. B. a table saw used to produce furniture in cabinetry shop. C. the most efficient blueprint of auto production. O D. Bob is receiving on the job training to prepare to become a maintenance electrician.arrow_forward
- Imagine that you have an "eatery" business, enumerate and briefly discuss your factors of production and factor payments.arrow_forwardEconomics, physical capital represents the uildings or machines used by a business to produce product. The marginal product of physical capital presents the rate of change of output product with spect to physical capital (informally, if you increase e size of your factory a little, how much more Foduct can you create?). articular model tells us that the output product Y is given, a function of capital K, by Y = AKªL'-a ere A is a constant, L is units of labor (assumed to be stant), and a is a constant between 0 and 1. Determine marginal product of physical capital predicted by this del. ned with CamScannerarrow_forwardSince the end of World War II, manufacturing firms in the United States and in Europe have been moving farther and farther outside of central cities. At the same time, firms in finance, insurance, and other parts of the service sector have been locating near downtown areas in tall buildings. One major reason seems to be that manufacturing firms find it difficult to substitute capital for land, whereas service-sector firms that use office space do not. a. What kinds of buildings represent the substitution of capital for land? b. Why do you think that manufacturing firms might find it difficult to substitute capital for land? c. Why is it relatively easier for a law firm or an insurance company to substitute capital for land?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning