1. which of the following is the best example of a capital good? a. a candy bar b. a new car for a family c…

1. which of the following is the best example of a capital good? a. a candy bar b. a new car for a family c. a machine that makes candy bars d. a video game 2. what is the main purpose of a capital good? a. to be consumed by people b. to be used to make other goods and services c. to be sold in a store for a profit d. to be a natural resource 3. which of the following is an example of a country investing in human capital? a. building a new highway b. opening a new factory c. building new schools and hospitals d. discovering a new oil field 4. why is human capital so important for a countrys economy? a. it helps people spend more money. b. it gives people the skills and knowledge to be productive. c. it makes natural resources grow faster. d. it helps to build more factories.

1. which of the following is the best example of a capital good? a. a candy bar b. a new car for a family c. a machine that makes candy bars d. a video game 2. what is the main purpose of a capital good? a. to be consumed by people b. to be used to make other goods and services c. to be sold in a store for a profit d. to be a natural resource 3. which of the following is an example of a country investing in human capital? a. building a new highway b. opening a new factory c. building new schools and hospitals d. discovering a new oil field 4. why is human capital so important for a countrys economy? a. it helps people spend more money. b. it gives people the skills and knowledge to be productive. c. it makes natural resources grow faster. d. it helps to build more factories.

Answer

Brief Explanations:

  1. A capital good is a durable good that is used in the production of other goods and services. A machine that makes candy bars is used to produce consumer - goods (candy bars), so it is a capital good.
  2. The main purpose of a capital good is to be used in the production process to make other goods and services.
  3. Human capital refers to the knowledge, skills, and health that people invest in themselves or are invested in by society. Building new schools and hospitals improves people's knowledge (through education) and health, which are aspects of human - capital investment.
  4. Human capital is important for a country's economy because it gives people the skills and knowledge to be productive, which in turn can increase economic output.

Answer:

  1. c. A machine that makes candy bars
  2. b. To be used to make other goods and services
  3. c. Building new schools and hospitals
  4. b. It gives people the skills and knowledge to be productive.