Which of the Following Represents the Best Example of Proprietor's

question 103

Multiple Choice

Which of the following represents the best example of proprietor's income?

• A)the paycheck that Freeda brings home from her job as a computer programer
• B)the interest that Hans earns from the savings account he has with USA Bank
• C)the revenue that Janet has left over after she pays all the expenses associated with running her software development business
• D)the check that Hunter receives each month for leasing his land to the natural gas company that is drilling on his land
• E)the check that Trisha gets each month from the Social Security Administration

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across an economy or market.

Marginal Revenue Product

The additional revenue a firm earns by employing one more unit of input, such as labor or capital.

Variable Input

An input in the production process that can be varied in the short term to adjust output, such as labor or raw materials.

Profit-maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.