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 62 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
Thanks for the timely response, appreciate it

dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Four main models that describe the relationship between ecosystem function and biodiversity. Four main models that describe the relationship between ecosystem function and biodiversity.
Natural Capital Natural Capital
Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s
Relationship Between Income per Capita and Population Growth Relationship Between Income per Capita and Population Growth
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
The relationship between maternal age and the frequency of trisomy 21 (Down syndrome). The risk incr The relationship between maternal age and the frequency of trisomy 21 (Down syndrome). The risk incr
Video: Green alga life cycle Animation

For a complete list of videos, visit our video library