What are the factors of production and their prices?
What will be an ideal response?
The factors of production and their prices are: labor, which is paid a wage rate for labor services; capital, which is paid a rental rate for capital services; land, which is paid a rental rate for land services; and entrepreneurship, which receives a profit or bears a loss that results from business decisions.
You might also like to view...
As of December 2008, the most important category in the CPI is
a. medical care b. education c. transportation d. food and beverages e. housing.
According to the table below, what is the marginal cost of producing 90 units of output?QFCVC01,0000201,000350501,000700901,0001,0501251,0001,4001451,0001,7501601,0002,100
A. 21.00 B. 5.32 C. 8.75 D. 11.67
Answer the following statements true (T) or false (F)
1. The classical economists held that the rate of interest would equate planned investment and planned saving, so that all saving would eventually be invested. 2. According to the Keynesian analysis, equilibrium occurs at the point where total aggregate expenditure equals total output. 3. According to the Keynesian analysis, as income increases, the marginal propensity to consume will rise. 4. According to the Keynesian analysis, equilibrium will occur where planned injections equal planned leakages. 5. Any time that planned leakages exceed planned injections, the economy will expand.
An implicit cost is defined as:
A) the opportunity cost of using a resource that is not explicitly paid out by the firm. B) the difference between an input's explicit cost and its actual cost. C) the amount by which economic profit exceeds accounting profit. D) the amount by which the money spent on an input to production exceeds its opportunity cost.