Which of the following is an example of a factor payment?
a. The U.S. government pays Sunset Farms a subsidy of $1 million per year.
b. Yves is an entrepreneur who earns a profit of $2 million for putting capital together for
a firm.
c. Alchemy Chemicals uses $500,000 to replace worn out equipment.
d. Healthy Grocers pays $750,000 to increase its stock of organic preserves.
b. Yves is an entrepreneur who earns a profit of $2 million for putting capital together for
a firm.
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If production involves decreasing opportunity cost, the production possibilities frontier
A. is “bowed inward.” B. is a straight line. C. is “bowed outward.” D. is a wavy line. E. has an unpredictable shape.
The optimal mark-up is: m = -1/ (E+1). When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is:
a. -1 b. -1.5 c. -2 d. -3
Robert Tadmur exports processed turkey and has an upward sloping supply curve. The supply curve indicates that Robert faces a marginal cost of $0.25 or less per pound for supplying the first few pounds. But every producer in this market sells turkey at the market clearing price of $0.50 per pound. The difference between the actual amount that Robert receives and what he would accept to supply the
market clearing quantity is called a. consumer surplus b. importer surplus c. producer surplus d. trade deficit e. average variable cost
If society were to experience an increase in its available resources its production possibilities frontier would:
A. shift in. B. not move. C. become convex. D. shift out.