(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
EP PRIN.OF MICROECONOMICS-MYLAB ACCESS
- In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______ Group of answer choices Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so income must rise to maintain equilibrium in the money market Raises the interest rate, so that income must rise to maintain equilibrium in the money market.arrow_forwardSuppose a country with a fixed exchange rate decides to implement a devaluation of its currency and commits to maintaining the new fixed parity. This implies (A) ______________ in the demand for its goods and a monetary (B) _______________. Group of answer choices (A) expansion ; (B) contraction (A) contraction ; (B) expansion (A) expansion ; (B) expansion (A) contraction ; (B) contractionarrow_forwardAssume a small open country under fixed exchanges rate and full capital mobility. Prices are fixed in the short run and equilibrium is given initially at point A. An exogenous increase in public spending shifts the IS curve to IS'. Which of the following statements is true? Group of answer choices A new equilibrium is reached at point B. The TR curve will shift down until it passes through point B. A new equilibrium is reached at point C. Point B can only be reached in the absence of capital mobility.arrow_forward
- A decrease in money demand causes the real interest rate to _____ and output to _____ in the short run, before prices adjust to restore equilibrium. Group of answer choices rise; rise fall; fall fall; rise rise; fallarrow_forwardIf a country's policy makers were to continously use expansionary monetary policy in an attempt to hold unemployment below the natural rate , the long urn result would be? Group of answer choices a decrease in the unemployment rate an increase in the level of output All of these an increase in the rate of inflationarrow_forwardA shift in the Aggregate Supply curve to the right will result in a move to a point that is southwest of where the economy is currently at. Group of answer choices True Falsearrow_forward
- An oil shock can cause stagflation, a period of higher inflation and higher unemployment. When this happens, the economy moves to a point to the northeast of where it currently is. After the economy has moved to the northeast, the Federal Reserve can reduce that inflation without having to worry about causing more unemployment. Group of answer choices True Falsearrow_forwardThe long-run Phillips Curve is vertical which indicates Group of answer choices that in the long-run, there is no tradeoff between inflation and unemployment. that in the long-run, there is no tradeoff between inflation and the price level. None of these that in the long-run, the economy returns to a 4 percent level of inflation.arrow_forwardSuppose the exchange rate between the British pound and the U.S. dollar is £1 = $2.00. The U.S. government implementsU.S. government implements a contractionary fiscal policya contractionary fiscal policy. Illustrate the impact of this change in the market for pounds. 1.) Using the line drawing tool, draw and label a new demand line. 2.) Using the line drawing tool, draw and label a new supply line. Note: Carefully follow the instructions above and only draw the required objects.arrow_forward
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