Economics what is considered capital in this story?
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Henrietta O'Leary was a pioneer in the Old West. Her husband died on the journey from Pennsylvania to Colorado. When Henrietta arrived in Denver, she opened a business that sold wheel axles to other pioneers. To set up the business, she borrowed $100 to build a small factory with a store attached to it. She hired two woodworkers and a manager to run the store. Her other primary expenses included the wood used to make the axles, the metal tools woodworkers used in the axle-making process, and a $10 yearly interest payment on the $100 loan.
2.2. Once the business was established, Henrietta was able to let it run itself. She moved to San Francisco and received a $500 check each year representing the profits from her business.
Which of the following are considered by economists to be "capital"?
I. The factory
II. The trees used to produce the axles
III. The metal tools used to produce the axles
IV. The original $100 loan
V. The $500 received by Henrietta in San Francisco
Economics what is considered capital in this story?Honestly the factory, the trees if she owned them, the tools, and the $100. The $100 would be "venture capital" All the items of value would also be capital as well.
Economics what is considered capital in this story?I'm pretty sure it's 1, 3, and 4.
Check your textbook, some draw a line between resources that get used up, and capital.
Economics what is considered capital in this story?I. The factory
III. The tools
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