This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Define capital. Explain the relationship between investment and capital. What will be an ideal ... (Read 72 times)

WhattoUnderstand

  • Hero Member
  • *****
  • Posts: 517
on: Jun 29, 2018
Define capital. Explain the relationship between investment and capital.
 
  What will be an ideal response?

Question 2

Assume that a lawyer and a secretary have been working together for two years. The lawyer suddenly realizes that he prepares legal briefs and types faster than the secretary. Upon learning this he decides to let his secretary go.
 
  Why might this be a mistake?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

missalyssa26

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

Capital is those goods produced by the economic system that are used as inputs in the production of future goods and services. Investment is a flow and capital is stock. Investment increases the stock of capital.

Answer to Question 2

It might be a mistake if it turns out that the secretary had a comparative advantage in typing over the lawyer. In other words it is very likely and possible that the secretary and type at a lower opportunity cost than the lawyer. By firing the secretary he has confused absolute advantage with comparative advantage.


WhattoUnderstand

  • Member
  • Posts: 517
Reply 2 on: Jun 29, 2018
Gracias!

shailee

  • Member
  • Posts: 392
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Who Gets Executed? Gender Bias in Capital Punishment Who Gets Executed? Gender Bias in Capital Punishment
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
Relationship between Income per Capita and Population Growth Relationship between Income per Capita and Population Growth
Relationship of Sun Angle and Solar Radiation Relationship of Sun Angle and Solar Radiation
Explain the myogenic autoregulation of the glomerular filtration rate Explain the myogenic autoregulation of the glomerular filtration rate
Relationship between birth weight and mortality in humans Relationship between birth weight and mortality in humans
Video: Ear Animation

For a complete list of videos, visit our video library