Which of the Following Would a Macroeconomist Classify as Capital

question 195

Multiple Choice

Which of the following would a macroeconomist classify as capital?

• A)a software program for an accounting firm 
• B)a share of stock in General Electric 
• C)a corporate bond from IBM 
• D)All of the above are types of capital.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often receiving dividends before common shareholders.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.

Common Shareholders' Equity

The amount of money that would be returned to common shareholders if all of the assets were liquidated and all of the company's debts were paid off.