F
forza_bologna
Member
Question 4A.2 of CT 7 (2011 edition) asks:
Which of the following are capital goods:
(i) a newly built factory
(ii)a school,
etc.
The answer says (ii) is true, that a school is a capital good
The definition says:
"Capital - All inputs into production that have themselves been produced (e.g. factories, machines and tools)."
Can somebody explain me why "a school" is a capital good? In my view, it does not enter into production.
Many thanks
Which of the following are capital goods:
(i) a newly built factory
(ii)a school,
etc.
The answer says (ii) is true, that a school is a capital good
The definition says:
"Capital - All inputs into production that have themselves been produced (e.g. factories, machines and tools)."
Can somebody explain me why "a school" is a capital good? In my view, it does not enter into production.
Many thanks