The Accumulation of Machinery and Buildings Used in the Production

question 456

Multiple Choice

The accumulation of machinery and buildings used in the production of new goods and services is referred to as

• A)production factors.
• B)output factors.
• C)capital.
• D)equity.

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Definitions:

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given income and prices.

Horizontal Axis

The x-axis in a graph, typically representing the independent variable or the quantity of interest.

Production Possibilities

A theoretical model depicting the various combinations of goods and services an economy can produce, given its available resources and technology.

Capital Goods

Capital goods are tangible assets such as buildings, machinery, and equipment that a business uses to produce goods or services.