Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid according to the value of its marginal product
a. only if this income is transmitted to households in the form of interest.
b. only if this income is transmitted to households in the form of dividends.
c. only if this income is transmitted to households in the form of interest or dividends.
d. regardless of whether this income is transmitted to households in the form of interest or dividends or whether it is kept within firms as retained earnings.
d
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The amount of income that households keep after paying taxes is
A) personal income. B) personal disposable income. C) value added income. D) national income.
In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.
Economic growth appears on a production possibilities curve as
A) the curve shifting out away from the origin. B) the curve shifting in toward the origin. C) a change in the slope of the curve. D) the points outside the production possibilities curve.
A primary determinant of market structure is the number of producers in a market
Indicate whether the statement is true or false