When economists refer to capital, they might mean
a. money
b. human skills used in production
c. stocks
d. bonds
e. bank loans
QUESTION 2Economists classify all of the following as capital, except one. Which one is not capital?
a. a 20 bill in a firm's petty cash drawer
b. the building where our economics class meets
c. a plumber's wrench
d. a railroad car
e. a factory
QUESTION 3Which of the following would an economist classify as capital?
a. 100 shares of Microsoft stock
b. a 50 bill
c. a credit card
d. a lawyer's personal computer
e. a bauxite mine in Jamaica
QUESTION 4In economics, capital is defined as
a. natural resources, such as water, oil, and iron ore
b. the natural, unskilled abilities of people
c. human creations used in the production process
d. money and other financial assets
e. the willingness of business owners to take risks
QUESTION 5Natural resources are
a. not considered scarce because no one pays for them
b. only desired for use in producing other goods
c. included in the category of resources called gifts of nature
d. available in unlimited quantities
e. not considered scarce because they are not produced by society
QUESTION 6A resource is something that
a. is used to produce goods and services
b. is provided by nature, not made by society
c. exists in unlimited quantities
d. must be produced by a firm
e. consumes goods and services
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