Why is capital not considered a primary factor of production?
A) It is produced by the economic system itself.
B) It is not a physical good.
C) It is in fixed supply.
D) It does not exist in all economies.
E) None of the above.
Correct Answer:
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Q31: The real interest rate is 2 percent
Q32: "Normal profits" may properly be included in
Q33: Investment in capital goods involves:
A)increasing present consumption.
B)forgoing
Q34: The demand and supply of capital is
Q35: In order to make worthwhile the construction
Q37: Real rates of return on capital have
Q38: In a perfectly competitive market, any larger
Q39: The present discounted value of $100 payable
Q40: In an ideal capital market:
A)competitive market forces
Q41: The rate of return to new capital
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