Which of the Following Would NOT Be Considered Physical Capital

question 120

Multiple Choice

Which of the following would NOT be considered physical capital?

• A)a new factory building
• B)a computer used to help Mercury Delivery Service keep track of their orders
• C)on-the-job training
• D)a desk used in an accountant's office

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Definitions:

Moral Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences, usually by a contract or an agreement, leading to suboptimal outcomes for the other party.

Automobile Insurance

A policy purchased by vehicle owners to mitigate costs associated with car accidents.

Medical Coverage

Insurance that pays for medical expenses, including doctor visits, hospital stays, surgery, and sometimes prescription drugs.

Law Clerks

Individuals, often law school graduates, who assist judges by conducting legal research and drafting opinions.