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2 years ago

Which of the following is an example of physical capital in an economy?

Business

1 answer:

Tom [10]2 years ago

4 0

Answer:

A. A cargo plane

Explanation:

In Economics, factors of production are used for the manufacturing of goods and services in order to meet the unending needs or requirements of the consumers at a specific price and period of time. The four (4) factors of production are;

I. Land.

II. Labor.

III. Entrepreneurship.

IV. Capital.

Physical capital can be defined as any tangible, artificial goods which are typically used for the production of finished goods or services. Therefore, it comprises of building, computer, machinery or equipment, office utilities, cash, vehicles, etc.

Hence, a cargo plane is an example of physical capital in an economy because it is a tangible, man-made equipment used for the transportation of people or goods from one location to another.

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Determinants of market interest rates

ollegr [7]

Answer:

1. Real risk-free rate.

2. Nominal risk free-rate.

3. Inflation premium.

4. Liquidity risk premium.

5. Liquidity risk premium.

6. Maturity risk premium.

Explanation:

Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;

1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*

2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.

3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.

4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.

5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.

6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.

7 0

3 years ago

Do lenders always accept applications for credit?

Yakvenalex [24]

NO. Lenders doesn't always accept application for credit. They always perform investigation about the financial status of the applicant. Only once the financial status of the applicant is finished reviewed and passed, the application for credit will be accepted.

4 0

2 years ago

Why does my dad stick his weener up my dog

vivado [14]

What the heck uhmmmm

6 0

2 years ago

Read 2 more answers

When all companies and their managers in a society behave in a socially responsible way, business increases, quality of life inc

Mkey [24]

Available Options Are:

A. A climate of caring will pervade.

B. Lawlessness all but ceases to exist.

C. People look after their own interests.

D. Small business starts increase.

E. Inflation decreases.

Answer:

Option A. A climate of caring will pervade.

Explanation:

When the people in a society start acting socially responsible which means that they value every single life on earth because acting socially means sustainability which says that the future generation needs must not be compromised in meeting current generation needs. Hence when everyone will be thinking as a socially responsible person then their will be a climate of care and every life matter would be understood by every single person on earth.

7 0

3 years ago

Ferguson Company recognized $400 of estimated manufacturing overhead costs at the end of the month. How does this transaction af

nadezda [96]

Answer:

This leads to a reduction in net income

Explanation:

Manufacturing overheads refer to those costs which indirectly relate to a good's production. Examples of manufacturing overheads would include depreciation charged on equipments used for production, rent of the factory wherein production takes place.

The effect of recognition of $400 of estimated manufacturing overheads would be reduction in net income since their recognition raises the cost of production which reduces gross profit. Consequently this would reduce the net income.

8 0

3 years ago