What is microeconomics and its example?
Microeconomics is the study of decisions made by people and businesses regarding the allocation of resources, and prices at which they trade goods and services. For example, microeconomics examines how a company could maximize its production and capacity so that it could lower prices and better compete.
Which of the following would an economist classify as capital?
The answer is B.) a lawyer’s personal computer. Capital is the factor of production that enhances the productivity of labor.
Which of the following would Economists classify as land?
In economics, land comprises all naturally occurring resources as well as geographic land. Examples include particular geographical locations, mineral deposits, forests, fish stocks, atmospheric quality, geostationary orbits, and portions of the electromagnetic spectrum. Supply of these resources is fixed.
What is an example of capital in economics?
Capital is defined as “All those man-made goods which are used in further production of wealth.” Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, railways and all means of transport and communication, raw materials, etc., are included in capital.
What are examples of physical capital?
Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital.
What are different types of capital?
The six types of capital include financial capital; human capital; manufacturing capital, social capital; intellectual capital and natural capital.
What are the six capitals?
The six capitals are financial, manufactured, intellectual, human, social and relationship, and natural. By taking these into account when reporting on performance, a company provides a fuller picture of the way in which it creates value.