Question 1
A clothing manufacturer produced 5,000 sweaters, but sold only 4,000 of them. The remaining 1,000 sweaters would be classified as
◦ a loss to the firm.
◦ part of the firm's tangible capital.
◦ part of the firm's intangible capital.
◦ a factor of production.
Question 2
An example of tangible capital is
◦ a restaurant's unsold, unopened cans of soda.
◦ an idea for a new business.
◦ the goodwill a firm has established through advertising.
◦ knowledge of how to program a computer.