Which One of the Following Is an Example of Capital

question 7

Multiple Choice

Which one of the following is an example of capital as a factor of production?

• A)money held by Tim Hortons
• B)a Bell Canada bond
• C)an automobile factory owned by Ford
• D)a high school teacher
• E)natural gas

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Definitions:

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, such as pollution caused by industry, which are not reflected in the market prices.

Positive Externalities

Benefits that result from a transaction or activity and affect others not directly involved in the transaction or activity.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a product, including both private and external costs.

Marginal Private Cost

The additional cost borne by a producer for producing one extra unit of a good or service.