The Key Distinction Between a Factor of Production and an Input

question 262

Multiple Choice

The key distinction between a factor of production and an input is that:

• A)an input is an enduring source of income,but a factor of production is used up in production.
• B)a factor of production earns income from selling its services over and over again,but an input does not.
• C)an input earns income from selling its services over and over again,but a factor of production does not.
• D)a factor of production has limited earning potential.

Understand the role of interest rates in investment decisions by individual firms.

Recognize the ethical and religious viewpoints on lending practices.

Understand the concept of interest and how it affects the value of money over time.

Calculate the present value of a future sum of money given an annual interest rate and timeframe.

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Definitions:

Southern Division

A geographical or organizational subsection of a company that operates in the southern region.

Fixed Expenses

Costs that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs associated with running a business, resulting in neither profit nor loss.

Northern Division

A geographical or organizational segment of a company responsible for operations in the northern region.