(a)
Classifying capital.
(a)
Explanation of Solution
Life guard training and certification from the Red Cross is regarded as the intangible human capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(b)
Classifying capital.
(b)
Explanation of Solution
The ice cream factory is regarded as tangible capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(c)
Classifying capital.
(c)
Explanation of Solution
The roller coaster is regarded as the tangible capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(d)
Classifying capital.
(d)
Explanation of Solution
Individual retirement account cannot be regarded as the capital, as it is merely a financial instrument.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(e)
Classifying capital.
(e)
Explanation of Solution
The Air and Space Museum is regarded as social capital or infrastructure.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(f)
Classifying capital.
(f)
Explanation of Solution
The shares of a stock are merely a financial instrument, as is not regarded as capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(g)
Classifying capital.
(g)
Explanation of Solution
All terrain vehicles are represented as a social capital or infrastructure.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(h)
Classifying capital.
(h)
Explanation of Solution
Cans of paint are regarded as tangible capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(i)
Classifying capital.
(i)
Explanation of Solution
Dollar coins are not capital but a financial instrument.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
(j)
Classifying capital.
(j)
Explanation of Solution
Home for cubs is a tangible capital.
Capital: In economic terms, capital can be defined as goods produced by the economic system that is used as inputs for production of other goods and services in the future.
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Chapter 11 Solutions
Principles of Economics (12th Edition)
- Need help with economics question Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (d) People’s values change, and they start to save more of their income.arrow_forwardWhich of the following statements about capital are correct? a) In economic jargon capital is the net worth of a business enterprise. b) Capital is defined as anything that is produced that then produces other things c) An increase in capital will grow the economy because capital is a resource in the production process and an increase in resources increases the production possibilities or potential production of the economy. d) Capital represents the tools that labor uses and thus an increase in capital tends to increase the productivity of labor (and possibly other resources) and that magnifies economic growth. e) Most technological advances involve improvements to the tools of production, which is capital, so embodiment of new technology in capital is yet another way capital fosters economic growth. f) increasing capital in the economy has to lead to greater income inequality, since most capital is owned by the rich.…arrow_forwardQuestion 57 Which of the following would NOT be described as “capital” by economists? Question 57 options: a) stocks and bonds b) a farmer buys a new tractor c) a doctor’s office buys a new X-ray machine d) Ford buys a new machine to aid in the production of carsarrow_forward
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