What Would Be an Example of Capital Good

question 67

Multiple Choice

What would be an example of capital good?

• A) Jeanette buys a new dress.
• B) The local driver's license office purchases a new digital camera and printer.
• C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
• D) Apple sells computers to Japan.
• E) Rhianna gets a haircut.

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Definitions:

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service, considering both private costs and externalities.

Marginal Private Cost

The additional cost incurred by the producer for producing an extra unit of a good, not considering external effects.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Social Marginal Benefit

The additional benefit to society of consuming or producing one extra unit of a good or service, including both direct and external benefits.