Consider a Manufacturing Plant as an Example of Physical Capital

question 66

Multiple Choice

Consider a manufacturing plant as an example of physical capital.Factor mobility with regard to this physical capital refers to

• A)the ease with which this plant can be relocated to another location.
• B)the ease with which this plant can be converted to a different use.
• C)the ease with which the labour employed at the plant can be retrained to produce a different product.
• D)the elasticity of supply of the labour employed in the plant.
• E)only the long-run concept of mobility because it is physical capital.

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Definitions:

365-Day Year

A term referring to the normal count of days in a calendar year, not including leap years which have 366 days.

Quarterly Payroll

The total amount of wages paid by a business to its employees in a three-month period.

Ordinary Simple Interest

A method of calculating the interest charge on a loan based on the principal amount, interest rate, and time.

360-Day Year

Refers to an accounting simplification where a year is assumed to have 360 days instead of 365 or 366, commonly used in financial calculations.