Economists Use the Term Capital to Describe That Factor of Production

question 20

True/False

Economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery, and tools.

Analyze the relationship between technological improvements and labor demand.

Understand the impact of changes in input prices on the demand for substitute inputs.

Calculate the marginal product of labor using given data.

Understand the relationship between the demand for a product and the demand for labor used to produce that product.

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Definitions:

Debit

A financial record that elevates an asset or expense account, or lessens a liability or equity account.

Double-entry Accounting

An accounting method where every financial transaction results in equal and opposite effects in at least two different accounts.

Ledger

A book or collection of financial accounts where all transaction records are summarized and recorded.

Journal

A book or digital record where all financial transactions are initially recorded in chronological order before being posted to accounts in the ledger.