Capital and Answer

1

Multiple Choice

1)

Goods produced by the economic system that are used as inputs in the production of future goods and services are
A)

consumable goods.
B)

capital goods.
C)

tangible goods.
D)

depreciation goods.
Answer:

B
2)

In the capital market, households ________ supply the financial resources to firms that allow them to purchase ________.
A)

indirectly; capital
B)

directly; capital
C)

indirectly; land
D)

indirectly; labor
Answer:

A
3)

Firms that offer to pay for college tuition for their employees are investing in ________ capital.
A)

tangible
B)

productive
C)

social
D)

human
Answer:

D
4)

A clothing manufacturer produced 5,000 sweaters, but sold only 4,000 of them. The remaining 1,000 sweaters would be classified as
A)

a loss to the firm.
B)

part of the firmʹs tangible capital.
C)

part of the firmʹs intangible capital.
D)

a factor of production.
Answer:

B
5)

An example of tangible capital is
A)

a restaurantʹs unsold, unopened cans of soda.
B)

an idea for a new business.
C)

the goodwill a firm has established through advertising.
D)

knowledge of how to program a computer.
Answer:

A

6)

The measure of a firm's ________ is the current market value of its plant, equipment, inventories, and intangible assets.
A)

investment
B)

depreciation
C)

capital stock
D)

capital flow
Answer:

C
7)

A university requires that all entering first-year students learn how to use word processing and spreadsheet software. This is an investment in what type of capital?
A)

Tangible
B)

Financial
C)

Human
D)

Productive
Answer:

C
8)

An example of intangible capital is
A)

a vacation house.
B)

a flower garden.
C)

a book.
D)

a trained apprenticeship program.
Answer: