Which of the Following Is the User Cost of Capital

question 22

Multiple Choice

Which of the following is the user cost of capital per dollar of capital?

• A) depreciation + interest rate
• B) the user cost of capital
• C) the opportunity cost of capital
• D) all of the above

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Definitions:

Nonlabor Income

Income received that does not come from working, such as investment income, social security benefits, or inheritance.

Leisure

Free time spent away from business, work, and domestic chores, often used for rest, recreation, and personal interests.

Wage Rate

The wage rate is the amount of money paid to a worker for a specified quantity of work, typically expressed on an hourly, daily, or piecework basis.

Tangerines

A small citrus fruit with a deep orange color, easy to peel skin, and a sweet flavor.