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stupid question

I have never played with a guitarist that uses a capo...so here it goes ....he puts it on the second fret and plays a g ....does that means its an a ....don't laugh too hard ...never had to deal with one ....seems to me it would be two steps up ...just a guess ...thanks
 
The root note of the G chord is moved up 2 frets to the A, becoming an A chord. Acoustic player in my country band uses a capo a lot of the time.

This is quite common in country & bluegrass but I don't recall running across it a lot with Rock players.
I have seen it occasionally. The big difference is normally between those playing full five or six string open chords, most of the time a steel string acoustic player and those playing closed chords and chord fragments where they don't want a ringing sustaining string
 

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