In November 2008, automobile executives from Ford, GM and Chrysler testified to Congress that their firms needed a $25 billion bailout to prevent bankruptcies. The executives stated that part of the cash would be used to re-design production lines. The $25 billion is and the
Re-designed production lines are .
A) physical capital; financial capital
B) net investment; gross investment
C) gross investment; physical capital
D) financial capital; physical capital

Question

Quizplus · Accepted Answer

The $25 billion bailout is financial capital, as it represents the funds needed for investment. The re-designed production lines are physical capital, as they are tangible assets used in production.

In November 2008, Automobile Executives from Ford, GM and Chrysler