Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 1.2P
(a)
To determine
Capital vs. investment.
(b)
To determine
Statement on
(c)
To determine
Statement on Social capital.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Why is "financial capital" unable to be categorized as an attribute of production?
A competitive capital market is important to society because it directs resources toward projects that a.have an outcome that is known with certainty. b.create wealth. c.can be completed quickly. d.reduce the value of the resources employed.
Explain the difference between "capital", "human capital", and "financial capital"?
Chapter 11 Solutions
Principles of Economics (12th Edition)
Ch. 11.A - Prob. 1PCh. 11.A - Prob. 2PCh. 11.A - Prob. 3PCh. 11.A - Prob. 4PCh. 11.A - Prob. 5PCh. 11.A - Prob. 6PCh. 11.A - Prob. 7PCh. 11.A - Prob. 8PCh. 11.A - Prob. 9PCh. 11.A - Prob. 10P
Ch. 11.A - Prob. 11PCh. 11.A - Prob. 12PCh. 11 - Prob. 1.1PCh. 11 - Prob. 1.2PCh. 11 - Prob. 1.3PCh. 11 - Prob. 2.1PCh. 11 - Prob. 2.2PCh. 11 - Prob. 2.3PCh. 11 - Prob. 2.4PCh. 11 - Prob. 2.5PCh. 11 - Prob. 2.7PCh. 11 - Prob. 2.8PCh. 11 - Prob. 2.9PCh. 11 - Prob. 3.1PCh. 11 - Prob. 3.2PCh. 11 - Prob. 3.3PCh. 11 - Prob. 3.4PCh. 11 - Prob. 3.5PCh. 11 - Prob. 3.6P
Knowledge Booster
Similar questions
- Explain the key terms frequently used in research writing.• Credibility:• Transferability:• Replicability:• Trustworthiness:• Positivists:• Constructivists:• IRB informed consentarrow_forwardWhat models does Gary Becker use to justify and explain human capital and why economics should focus on intangible assets?arrow_forwardExplain the term capital in deptharrow_forward
- Policymakers trying to promote economic growth must confront the issue of what kinds of capital the economy needs most. If policymakers decide to rely on the marketplace to allocate the pool of saving to alternative types of investment, Those industries with the kinds of capital that yield the lowest marginal product will borrow the most. Those industries with the kinds of capital that yield the highest marginal product will borrow the least. All industries will have incentives to borrow more. Those industries with the kinds of capital that yield the highest marginal product will borrow the most.arrow_forwardWhich of the following statements is correct regarding weak sustainability? A. Weak sustainability requires that we maintain the physical service flows of the natural capital stock. B. Weak sustainability requires that we maintain the value of the natural capital stock. C. Weak sustainability requires that we maintain the total (natural plus physical) capital stock. D. Weak sustainability requires that we invest the resource rents (the Hartwick Rule) earned by depleting the natural capital stock so as to maintain the total (natural plus physical) capital stock. O E. Both statements (C) and (D) are correct.arrow_forwardInvestment in capital is important because it A-decreases productivity. B-leads to lower taxes. C-increases productivity. D-leads to higher taxes.arrow_forward
- The term capital, as used by economists, refers to a money b the physical space in which production occurs c the time allocated to producing goods and services d financial securities such as stocks and bonds e machinery and equipment that is not used up during the production processarrow_forwardIf it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of a capital-using technology. a capital-saving technology. capital consumption. private capital flows.arrow_forwardWhich of the following events would likely NOT shift the demand for loanable funds to the right? A An investment tax credit making investment more attractive. B A new technology promises to increase worker productivity. C An increase in the number of businesses qualifying for a loan. D The government spending exceeds its tax revenue because it is constructing a new electricity grid.arrow_forward
- Explain the concept of investment opportunity set in more than 250 words.arrow_forwardRead the following premise carefully and answer the questions specifically and in detail, you must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words. "In the face of unstable economic growth due to a recession or accelerating inflation, potential problems with large public debt include higher income inequality, reduced economic incentives, and crowding out of private investment".2. Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.arrow_forwardMovers & Shakers Co. is very keen on investing in a Wind Farm in the energy sector in Dominica. 1. List and explain 3 factors of productivity that Movers & Shakers Co. can bring with their investment. [3 marks each] 2. Explain carefully why productivity is key determinant of Dominica’s standard of living. [10 marks] 3. Discuss the relevance of productive efficiency and allocative efficiency in the growth process.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning