All of the Following Are Examples of Capital Except

question 46

Multiple Choice

All of the following are examples of capital except:

• A) the robot used to help produce your car.
• B) a computer used by your professor to write this exam.
• C) the factory that produces the costume jewelry you buy.
• D) the inventory of unsold goods at your local hardware store.
• E) an uncut diamond that you discover in your backyard.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit.

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price of the good.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, often due to market distortion such as taxes or subsidies.