What Is the Difference Between a Factor of Production and Factor

question 84

Essay

What is the difference between a factor of production and factor price? Give an example of each.

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Definitions:

Net Capital Spending

This refers to the amount spent by a company on acquiring or maintaining fixed assets, such as equipment or buildings, after accounting for depreciation.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the purchase price.

Non-Eligible Dividends

Dividends that are paid out by a company from earnings that are not subject to the preferential tax treatment as eligible dividends in some jurisdictions.