To Avoid the Stock Versus Flow Issue in Production, Some

question 129

Multiple Choice

To avoid the stock versus flow issue in production, some economists discuss capital usage in terms of rented capital. For example, your firm may not directly own some of the capital inputs to your production operation, and these capital inputs are employed on an hourly or daily basis. Which of the following inputs is a good example of a capital input that acts like a flow?

• A) Land and buildings that are owned by the firm
• B) A long-term licensing agreements that allow you to use a patented idea owned by another firm
• C) A forklift that is rented on an hourly basis
• D) all of the above

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Definitions:

Cold Turkey

The abrupt cessation of a substance or behavior that one is addicted to, without the aid of reducing the habit gradually or using replacement medication.

E-cigarettes

Electronic devices that simulate tobacco smoking by producing an aerosol, often referred to as vapor, that users inhale.

Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug, which has various health risks including respiratory diseases, heart disease, and cancer.

Dopamine Neurons

Specialized nerve cells that produce and release dopamine, a neurotransmitter that plays key roles in motivation, reward, and movement.