Which of the following is NOT a capital good?
A. A new apartment building purchased by a corporation
B. Batteries purchased by a car manufacturer to install in new cars
C. A new house purchased by a family
D. Machines purchased by a car manufacturer to measure metal thicknesses
Answer: B
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The economic scenario of the early 2000s did not include:
a. a stock market fall. b. low interest rates. c. a strong increase in employment. d. a fall in real investment.
In the automobile industry, workers have just negotiated a new contract giving workers a large raise. There has also been an increase in the number of licensed drivers who are in the market for a new car. In the market for new automobiles, the effects
that these changes will have on the equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.