Which Statement Is NOT True About the Factor Distribution of Income

question 130

Multiple Choice

Which statement is NOT true about the factor distribution of income?

• A)It is the division of total income among labor,land,and capital.
• B)Labor receives the bulk of the income in the modern U.S.economy.
• C)The returns to human capital are easily measured.
• D)A part of the proprietor's income should be considered wages that the business owners pay themselves.

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Definitions:

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss.

Variable Cost

Variable costs vary directly with the level of production output and can include expenses like raw materials and labor directly involved in a product's manufacturing.

Fixed Costs

Fixed costs are those business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed to variable costs in a company's cost structure.