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Indicate all the items in the following list that are not capital goods and explain why. Item a : An auto assembly line Item b
Indicate all the items in the following list that are not capital goods and explain why.
Item a: An auto assembly line
Item b: A shopping mall
Item c: A golf ball
Item d: The Atlantic Ocean
Item e: A truck owned by FedEx
Item f: A librarian
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Part
A
Items b and c because they provide personal enjoyment.
B
Items aband e because they are items that are bought by businesses to increase their productive resources.
C
Items c d and f because they are not items that businesses and governments buy to increase productive resources to use over future periods to produce other goods and services.
D
Item fonly because it is a factor of production.
E
Item d only because it can be used by businesses but not bought by businesses.
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