Choose the Statement That Is Incorrect

question 96

Multiple Choice

Choose the statement that is incorrect.

• A)Capital consists of the tools,instruments,machines,buildings,and other constructions that have been produced in the past and that businesses now use to produce goods and services.
• B)A market for capital services is a rental market.
• C)The services of the capital that a firm owns and operates have an implicit price that arises from depreciation and interest costs.
• D)Capital is a factor of production.
• E)Most capital services are traded in a market.

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Definitions:

Equipment

Tangible property used in the operation of a business, not intended for sale, such as machinery, computers, and tools.

Natural Resources

Assets that are found in nature and are used for economic gain, such as oil, forests, minerals, or water.

Depletion Expense

An accounting approach for allocating the cost of extracting natural resources from the earth over the period of their extraction.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.