Multiple Select QuestionSelect all that applyFirms can acquire capital in which of the following ways?Multiple select question.Purchasing it themselvesLeasing it from householdsAccumulating it from taxesCreating it from scratch
Question
Multiple Select QuestionSelect all that applyFirms can acquire capital in which of the following ways?Multiple select question.Purchasing it themselvesLeasing it from householdsAccumulating it from taxesCreating it from scratch
Solution
Firms can acquire capital in the following ways:
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Purchasing it themselves: Firms can buy capital such as machinery, buildings, or technology directly. This is a common way for firms to acquire capital.
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Leasing it from households: This is not a typical way for firms to acquire capital. Households usually do not have the type of capital that firms need.
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Accumulating it from taxes: Firms do not accumulate capital from taxes. Taxes are typically a cost to firms, not a source of capital.
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Creating it from scratch: Firms can indeed create capital from scratch, such as developing new technology or building new facilities.
So, the correct answers are "Purchasing it themselves" and "Creating it from scratch".
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