Why do economists use the terms investment and capital in very different contexts (physical investment and physical

Question:

Why do economists use the terms “investment” and “capital” in very different contexts (physical investment and physical capital versus financial investment and financial capital)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

See More Books

Question Posted: Feb 25, 2016 06:36 AM

See More Questions

Why do economists use models? How are economic data used to test models?
Why do economists use real GDP rather than nominal GDP to gauge economic well-being?
Assume that you recently graduated with a degree in finance and have just reported to work as an investment adviser at the brokerage firm of Smyth Barry & Co. Your first assignment is to explain the...
Pooling agreements have been outlawed in all states. True/false
Given a binomial random variable with n = 6 and p = .2, use the formula to find the following probabilities. a. P(X = 2) b. P(X = 3) c. P(X = 5)
According to financial theory, which is more important to the value of the firm, financing or operating cash flows?
Discuss the role of project accounting in project financial management.
Widmer Watercrafts predetermined overhead rate for year 2013 is 200% of direct labor. Information on the companys production activities during May 2013 follows. a. Purchased raw materials on credit,...
3) A payment method where the nominated bank will give the beneficiary an irrevocable deferred payment undertaking" to the effect the bank will pay on a certain future date? Who will be the drawee of...
1.3 Determine the force P necessary for the equilibrium of a steel bar shown in Fig. 1.69. The diameters of the first, middle and the last segments of the bar are 30 mm, 25 mm and 30 mm respectively....
Figures 16.3 and 16.4 show household debt as a percentage of GDP and the personal saving rate. According to these graphs, the ratio of household debt to GDP in 2007, before the financial crisis took...
How does the arbitrage equation help pin down the price of housing in our simple theory? What role does leverage play?
Suppose a family figures it can handle monthly mortgage payments of no more than $1,200. What is the largest amount of money they can borrow, assuming the lender is willing to amortize over 30 years...
During the year, the company had the following data Beginning inven Ending Finished Direct materials Direct labour per Variable manufa Fixed manufactu Variable selling Fixed selling cos REQUIRED (USE...
Consider a unimolecular reversible, elementary step reaction of the type: Equilibrium constant = K AR Given M = CRO/CAO and the conversion of A at equilibrium is fae, find the conversion of A as a...
I hope these notes will help you in writing your close reading papers due next week. Close Reading 1. Analysis in very fine detail, zoomed in, and preoccupied with the tiniest mechanical efforts of...
City Beverages Company provides a complete product line of beer, soft drink, and juice products. The following table shows the prices and quantities of the three products from the year of 2020 to...
(Sovereign Default Model) Let it be a risk free rate on the T-Bills. Let D, be the amount of debt. When the government issues the amount of debt Dt and defaults on it, the household consumption with...
The matrices are all nn. Each part of the exercises is an implication of the form If statement 1, then statement 2.Mark an implication as True if the truth of statement 2 always follows whenever...
In the figure, two loudspeakers, separated by a distance of d1 = 2.63 m, are in phase. Assume the amplitudes of the sound from the speakers are approximately the same at the position of a listener,...
1. A price-discriminating firm will charge a higher price to consumers with a relatively ________ (elastic/ inelastic) demand and a lower price to consumers with a relatively ________...
In many stores, nationally advertised brands share the shelves with store brands. For example, you can buy Kellogg s Frosted Flakes or Safeway s Frosted Flakes. Similarly, Bayer Aspirin shares a...
One way to get into a monopolistically competitive market is to get a franchise for a nationally advertised product. If you want to get into the donut market, you could pay a franchise fee of $40,000...
An all-equity firm is considering the purchase of a depreciable asset that costs $680,000 and would be fully depreciated over six years using the straight-line method. The asset is expected to...
A firm owns three department stores. Each store has a debt-equity ratio of 16 percent and makes interest payments of $44,000 at the end of each year. The cost of the firm's levered equity is 18...
Belgian Bite Corp. is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 Cash flows $1,100 $450 $470 $490

Why do economists use the terms investment and capital in very different contexts (physical investment and physical

Question:

Step by Step Answer:

Physical investment is the acquisition of capital goods Capit...View the full answer

Macroeconomics

Students also viewed these Economics questions