Question

1. Which of the following is an example of a capital good?        
   1. A new car sold to a family
   2. A new CD player sold to a teenager
   3. A metal-stamping machine used to produce cars sold to an automaker
   4. A new CD player sold to an automaker for installation in a car

2. A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called:

1. A) production costs. B) value added. C) profits.  D) investment.

3. A measurement in terms of current dollar value is called a(n) ____ quantity.

1. A) deflated B) indexed         C) nominal      D) real

4. Over the period from 1950 to 2010, which country experienced the fastest average annual growth rate of real GDP per person?

1. A) Canada        B) China     C) United States       D) Japan

Answer 1

Option C is capital good because it is used in the production process that helps in manufacturing Other goods. Car that is sold to the family is used for final consumption and so is the new CD player. The new CD player which is used for installation in a car will also be sold to the customer which means there will be no generation of Other goods

The difference between the purchase price and the the selling price is known as the value added and therefore option B is correct

It is nominal quantity select option C

Option B China