Ralph Is a Plumber

question 169

Multiple Choice

Ralph is a plumber. Which of the following are included in his physical capital?

• A)the knowledge he learned on the job, and the tools he uses
• B)the knowledge he learned on the job, but not the tools he uses
• C)the tools he uses, but not the knowledge he learned on the job
• D)neither the knowledge he learned on the job nor the tools he uses

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Definitions:

Market Price

The actual selling price of a good or service in the marketplace at any given time.

Face Value

The nominal or original value printed on a security or financial instrument, such as a bond or stock certificate, indicating its worth at issuance.

Coupon Rate

The yearly interest yield on a bond, shown as a percentage of its nominal value, disbursed from the date of issuance to the date it matures.

Present Value

A calculation that determines the current value of an amount of money to be received in the future, discounted at a specific interest rate.