Chapter_11 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 11 > Self-Study Quiz Date/Time  Submitted: February 7, 2012 at 11:17 AM  (UTC/GMT) Summary of Results 34% Correct  of 38 Scored items: 13 Correct:  34% 25 Incorrect:  66% 4 questions not scored. 38 scored questions. More information about scoring 1. Which of the following best  describes the term “capital”? Your Answer: Capital deals with the depreciation Correct Answer: Capital refers to goods used as in   Incorrect. Depreciation is the deterioration of capital goods. The addition to the  economy’s stock of capital in a given year equals new investment minus depreciation. 2. Which of the following is included in  the categories of  capital Your Answer: Social capital, or infrastructure. Correct Answer: All of the above.   Incorrect. Some physical or tangible capital is owned by the public instead of private  firms. Social capital, sometimes called infrastructure, is capital that provides services to  the public. Most social capital takes the form of public works like highways, roads,  bridges, mass transit systems, and sewer and water systems. Police stations, fire  stations, city halls, courthouses, and police cars all are forms of social capital that are  used as inputs to produce the services that government provides.
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3. Which of the following would be  considered capital by an economist? Your Answer: Inventories. Correct Answer: All of the above.   Incorrect. Inventories are expenditures in inputs used to produce output, smooth out the  production process, and be able to meet the demands of buyers. 4. A form of intangible capital that  includes the skills and other  knowledge that workers have or  acquire through education and  training is known as: Your Answer: Political capital. Correct Answer: Human capital.   Incorrect. This is not a category of economic capital. 5. Which of the following is the best  measure of the capital stock of a  business firm? Your Answer:   Correct. Current market value is the measuring yardstick used by managers,  accountants, and economists to measure total capital. 6. Which of the following is the closest  definition of the term  investment
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Your Answer:   Correct. We tend to think of investment as the purchase of stocks and bonds, but the  economist’s definition of investment refers to expenditures in capital goods. New  investment purchases add to the nation’s stock of capital, such as factories, buildings,  roads, equipment, and inventories.
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Chapter_11 - YourResultsfor:"SelfStudyQuiz"...

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