A capital good is

any good bought with borrowed moneyCorrect answerYour answera good sold only in the capital cityCorrect answerYour answera durable good used to produce other goods over several yearsCorrect answerYour answera good used up in one round of productionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Machines, tools, buildings and vehicles used by firms help produce goods for years.
They wear out slowly; that wear is depreciation.

Concept: Capital goods
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsConsumption and capital goods

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Ten questions from Basic Concepts & the Circular Flow, at your own pace.

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Ten questions from Basic Concepts & the Circular Flow, at your own pace.

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A capital good is

Explanation