Capital
A) does not include semifinished goods used to produce other goods and services.
B) increases when depreciation increases.
C) is a flow variable.
D) includes the plant, equipment, and buildings owned by firms.

Question

Quizplus · Accepted Answer

Capital includes the physical assets owned by firms, such as plant, equipment, and buildings, but does not include semifinished goods or depreciation. It is a stock variable, representing the accumulated value of productive assets.