The Stock of Physical Capital in the Economy Consists of All

question 174

Multiple Choice

The stock of physical capital in the economy consists of all of the

• A)buildings and equipment used by private firms and the government, plus residential housing.
• B)buildings and equipment used by private firms.
• C)buildings, equipment, and financial assets of private firms.
• D)buildings and equipment used by private firms and the government.
• E)buildings and equipment used by private firms and the government, not including schools and the military.

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Definitions:

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, considering some inputs remain fixed.

Industry-wide Price

The average or standard price level for goods and services across a specific industry or market.

Total Profit

The total earnings of a business after subtracting all costs, including both fixed and variable costs, from total revenue.

Average Total Cost

The total cost of production divided by the total quantity produced, including both fixed and variable costs.