--%>

Process of Capitalization

Capitalization is a process which converts: (1) natural resources into economic capital. (2) predictable income flows within wealth. (3) the opportunity cost of capital into the market interest rate. (4) financial capital into economic investment. (5) fixed costs into variable costs.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Experiencing the Economies of Scope A

    A soft drink bottler which finds it cost efficient and gainful to deliver the chips and other snack foods all along with cola would be experiencing: (i) Economies of scope. (ii) Positive psychic income. (iii) Economies of scale. (iv) Economies of structure. (v) Diseco

  • Q : Imposition of rent controls under

    The imposition of rent controls below equilibrium rental rates tends to create: (i) a housing surplus. (ii) booms of new apartment construction. (iii) declines in the quantity and upkeep of rental units. (iv) rising incomes for landlords. (v) enhanced

  • Q : Minimum value of investment multiplier

    Minimum value of investment multiplier: Investment multiplier K=1/1-mpcWhen mpc = 0 then K=1/1-0 = 1 that is the minimum value of investment multiplier

  • Q : Describe "in-market" mergers Describe

    Describe "in-market" mergers?An in-market merger is one which takes place among two banks operating in the similar geographic area, normally a city or metropolitan area. The merged institution frequently ends up with more than one branch in the

  • Q : Pure competition for quantity adjustment

    The only industrial structure in that all firms are pure quantity-adjusting price takers is: (1) impure oligopoly. (2) pure monopoly. (3) pure or perfect competition. (4) monopolistic competition. (5) pure oligopoly.

    Q : Function of money in economy State the

    State the main function of money in economy? Answer: The major function of money in an economic system is to ease the exchange of services and goods.

  • Q : Trade Restrictions of import and export

    Quotas that restricted U.S. imports of foreign steel between 2001 and 2004 because of the: (w) prices paid by U.S. car buyers to rise. (x) price of gasoline to rise sharply. (y) profits of U.S. steelmakers to drop. (z) quantities of European imports t

  • Q : Boycotts concerning problem People who

    People who decline to buy the products of a firm whose activities they disapprove, especially whenever such rejection is intended to support the employees who are on strike, and who advise others to not purchase such products, or to not deal with these firms, are enga

  • Q : Money functions Give me answer of this

    Give me answer of this question. Money functions as: A) a store of value. B) a unit of account. C) a medium of exchange. D) all of the above.

  • Q : Problem on quantity of Whopper Slushees

    When Adam Smith’s invisible hand executed with no government intervention, this market would be in equilibrium and quantity of Whopper Slushees demanded the quantity supplied would be equivalent at: (i) Price P1. (ii) Quantity Q1. (iii) Price P3. (iv) Quantity Q