Which of the Following Items Are Considered Physical Capital

question 17

Multiple Choice

Which of the following items are considered physical capital?
i. shares of Ford stock traded on the New York Stock Exchange
ii. the Taco Bell store nearest you
iii. the rental cars owned by Hertz Rental-A-Car
iv. the salaries paid to Intel executives

• A) ii and iii.
• B) i, ii and iv.
• C) i, ii and iii.
• D) i and iv.

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Definitions:

Roth Retirement Plan

A type of retirement savings plan where contributions are made with after-tax dollars, and qualified withdrawals in the future are tax-free.

Income Growth

The increase in the amount of money earned from investments or employment over time, reflecting economic expansion or personal financial improvement.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax paid by the taxable income.

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.