The Term "Capital," as Used in Macroeconomics, Refers to

question 3

Multiple Choice

The term "capital," as used in macroeconomics, refers to

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

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Equilibrium

A state in a market where the quantity of goods supplied is equal to the quantity of goods demanded, with no pressure to change the price or quantity.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, often set below the equilibrium price to keep goods affordable.

Consumer Surplus

The disparity between what consumers are ready and able to spend for a product or service and the amount they end up paying.