The Term ʺCapital,ʺ as Used in Macroeconomics, Refers to

question 31

Multiple Choice

The term ʺcapital,ʺ as used in macroeconomics, refers to

• A) investment.
• B) financial wealth.
• C) the sum of investment and government purchases of goods.
• D) the plant, equipment, buildings, and inventories of raw materials and semi-finished goods.

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Definitions:

Marginal Cost

The increase in total cost that arises when the quantity produced is incremented by one unit.

Total Profits

The financial gain obtained after subtracting total costs from total revenue over a period.

Marginal Revenue

The boost in income resulting from the sale of one more unit of a product or service.

Market Price

The existing value at which an asset or service might be acquired or disposed of on the open market.