8 Questions
What is the definition of capital?
Capital refers to financial assets or resources that are used to generate income or wealth.
Give an example of capital.
An example of capital is money that is invested in a business to purchase equipment and inventory.
Why is capital important in economics?
Capital is important in economics because it enables businesses to produce goods and services, create jobs, and stimulate economic growth.
Which of the following best describes a consumer price index (CPI)?
A weighted average of consumer goods and services
What is the purpose of calculating the CPI?
To measure changes in prices over time
How are the prices of goods and services in the CPI basket collected?
Monthly from a sample of retail and service establishments
What is one limitation of the CPI as a measure of inflation?
It does not account for changes in quality or features
What can the CPI be used for?
All of the above
Test your knowledge of capital with this quiz! Learn the definition of capital, explore examples of capital, and understand its significance in the field of economics.
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