What is the difference, if any, between physical capital and financial capital?
What will be an ideal response?
Physical capital refers to the actual tools, machinery, instruments, and buildings that have been produced in the past and are now being used to produce additional goods and services. Financial capital refers to the funds used to purchase the physical capital. Financial capital includes stocks and bonds.
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Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for $3 each, or it can sell 140 units for $2 each. Which of the following is true?
a. The monopolist is facing elastic demand. b. The monopolist is facing unit elastic demand. c. The monopolist is facing inelastic demand. d. The monopolist is facing perfectly elastic demand. e. The elasticity of demand cannot be determined with the information given.
What adjustments need to be made to go from national income to GDP?
What will be an ideal response?