Capital Is a Term Economists Use to Refer to

question 91

Multiple Choice

Capital is a term economists use to refer to

• A) man-made resources used to produce other goods and services.
• B) resources that are available in nature such as mineral deposits.
• C) money that is used to consume goods and services, to distinguish it from money that is saved.
• D) the value of the best alternative to an action.

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Definitions:

Effective Rate

The actual interest rate earned or paid on an investment, loan, or other financial product, taking into account the compounding effect.

Implied Annual Cost

An estimation of the cost associated with an investment or loan, calculated on a yearly basis, including interest, fees, and other charges.

Prompt Payment Discount

A discount offered to customers for paying their bills promptly, usually within a specified time frame to encourage faster payment.

Terms of Sale

The conditions under which a seller will complete a sale, typically outlining payment terms, delivery times, and quality expectations.