QQuestionEconomics
QuestionEconomics
Which of the following do economists consider to be capital?
Multiple Choice
a pair of stockings
a construction crane
a savings account
a share of IBM stock
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Answer
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Step 1: Understand the question and its context
The question asks which of the given options are considered capital in economics. Capital, in this context, refers to produced goods that are used in the production of other goods and services. These produced goods are not consumed but instead help create other goods or services, increasing productivity and output.
Step 2: Identify the options that are capital
a) A pair of stockings - Incorrect. Stockings are consumer goods, not capital goods. They are consumed and not used in the production of other goods or services. b) A construction crane - Correct. A construction crane is a capital good. It is a produced durable good that is used in the construction of buildings, infrastructure, and other projects. It is not consumed but instead helps create other goods and services. c) A savings account - Incorrect. A savings account is a financial asset, not a capital good. While it can contribute to the financing of capital goods, it is not a capital good itself. d) A share of IBM stock - Incorrect. A share of IBM stock is a financial asset, not a capital good. It represents ownership in a company but does not directly contribute to the production of goods and services.
Final Answer
Of the given options, only a construction crane is considered capital in economics.
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