
(a)
Video poker game and the capital.
(a)

Explanation of Solution
The capital can be a large sum of money or any other commodity that can be used to produce other goods and services for the economy. The video poker game provides the entertainment, whereas the item provides and generates income to those who install it. Thus, it is capable of creating income for the future. Thus, it is a capital.
Capital: The capital is the large sum of money or any intermediary good that can be used as intermediaries to make other goods and services.
(b)
Capital and non capital: A $10 bill.
(b)

Explanation of Solution
The $10 bill provides means to purchase other commodities. But it is not an intermediate commodity. It is a final commodity with which anything can be purchased or sold in the economy. Thus, it is not an investment and not capital in that sense.
(c)
Capital and non capital: College education.
(c)

Explanation of Solution
College education helps to convert the individual into a productive labor. It helps to acquire skills and helps the individual to attain a good job and better living standards. Thus, it is considered as capital and especially human capital.
(d)
Capital and non-capital: Golden gate bridge.
(d)

Explanation of Solution
The golden gate bridge helps to connect between the two places. It, thus, enables the transport and communication and helps to the faster
(e)
Capital and non-capital: Shirt on the rack at sears.
(e)

Explanation of Solution
The shirt is a tangible commodity, and it provides income to the seller, which means the shirt is in terms a capital for the seller. It is a tangible capital of the seller.
(f)
Capital and non-capital: A government bond.
(f)

Explanation of Solution
The government bond is an interest yielding
(g)
Capital and non-capital: Empire state building.
(g)

Explanation of Solution
The state building provides the office spaces for many of the firms and companies to operate in the economy, which facilitates the economic growth and development. Thus, it is a capital and since the buildings come under the tangibles, it is a tangible capital.
(h)
Capital and non-capital: Savings account.
(h)

Explanation of Solution
The savings account is an account kept in a bank, which stores the money of the individual. It can be withdrawn at any point of time according to the wish of the depositor. Thus, it is a financial instrument, which is not usually considered as a capital.
(i)
Capital and non-capital: Washington monument.
(i)

Explanation of Solution
The Washington monument is the tallest building in the DC. It facilitates the trade and commerce of the economy. Thus, it is considered as the infrastructural capital of the economy.
(j)
Capital and non-capital: A Honda plant.
(j)

Explanation of Solution
The plant uses the inputs to make the final vehicles with the help of the machinery present inside the plant. Thus, it helps to produce a large quantity of output to the firm. Thus, it comes under the category of tangible capital of the firm.
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Chapter 11 Solutions
Principles of Microeconomics
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