Question

1. Which of the following are capital, and which are not? Explain your answers. a. A video poker game machine at a local bar that takes quarters b. A $10 bill c. A college education d. The Golden Gate Bridge e. The shirts on the rack at Sears f. A government bond g. The Empire State Building h. A savings account i. The Washington Monument j. A Honda plant in Marysville, Ohio

Answer 1

Answert capital capital such as machines (a) A video Poker machine is includes physical i durable goods and equipment (6) $ 10 bill is not capital 2) It is not a good used to produce another good. (C) in college education is capital Human capital falls under intangible capital along with advertising and goodwill. 2) The investment of education into a worker can create a better good (worker) to produce other goods (d) i) Golden Gate Bridge is capital 2) Bridges fall under social capital which includes infrastructure such as bridges, highways and roads- - (e) () shists a rack at sears are copital. (2) They fall under Physical capital which include of inventories inputs and outputs such as Scanned with store clothing a at Clothing stock

() D) A government bord is not capital 2) It is not a good, it is a debt investment and a delayed Payment. (g) ) The Empire State Building is capital (2) It falls under Physical capital which includes non residential structures such as office buildings (b) O Savings accounts are not capitai. (2) It falls under Physical capital (2) They are not goods used to produce another good (3) They are a form of investment. (i) w The washington monument is not capital- (2) It is not considered social capital such as infrastructure , nor is it considered physical caprical such as non - residential buildings. (3) The Washington monument is also not used to produce other goods. o Honda plant is capital (2) An auto plant would fall under physical capital which includes non-residential Structures such as factories. Scanned with CamScanner