List and define two types of capital income
What will be an ideal response?
(1.) Interest represents the payments made for the use of money.
(2.) Profit is the excess of revenues over cost in a given period.
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What two basic ideas led to American preeminence in nineteenth-century manufacturing?
a. interchangeable parts and the right of incorporation b. continuous-process manufacturing, and the breast water wheel c. water frame spinning machines and the use of interchangeable parts d. interchangeable parts and continuous-process manufacturing
The market price of the product produced by Jones Inc, is $6 per unit, which is higher than the average cost of $4 per unit at the profit maximizing output level. The average variable cost of production is $3.5 per unit. If demand for its product declines due to introduction of cheaper substitutes and the market price of the product falls to $3.8 per unit, which of the following statements will
be true? a. The firm will close down in the short run. b. The firm will continue production as long as the market price is above average variable cost. c. The firm will continue production as long as the market price exceeds fixed cost. d. The firm will minimize it losses by producing where average variable cost equals $3.8.
Which of the following buys goods for personal use?
a. consumer b. a person who is broke c. people who have not maxed out their credit cards d. client
The opportunity cost of holding money is measured by
A. the price of government bonds. B. the return from company stock shares that the money can buy. C. the interest yield that could have been earned by holding some other asset. D. the liquidity of interest-bearing assets.