Author Question: To avoid the stock versus flow issue in production, some economists discuss capital usage in terms ... (Read 83 times)

ssal · **on:** Jul 1, 2018

To avoid the stock versus flow issue in production, some economists discuss capital usage in terms of rented capital.

For example, your firm may not directly own some of the capital inputs to your production operation, and these capital inputs are employed on an hourly or daily basis. Which of the following inputs is a good example of a capital input that acts like a flow? A) Land and buildings that are owned by the firm
B) A long-term licensing agreements that allow you to use a patented idea owned by another firm
C) A forklift that is rented on an hourly basis
D) all of the above

Question 2

The link between the productivity of labor and the standard of living is

A) tenuous and changing.
B) inverse.
C) that over the long run, consumers as a whole can increase their rate of consumption only by increasing labor productivity.
D) that over the long run, consumers' rate of consumption is not related to labor productivity.
E) that the productivity of labor grows much more erratically than the standard of living.