Which of the Following BEST Defines Capital as a Factor

question 30

Multiple Choice

Which of the following BEST defines capital as a factor of production?

• A)Instruments, machines and buildings used in production
• B)The gifts of nature that businesses use to produce goods and services
• C)Financial assets used by businesses
• D)The knowledge and skills that people obtain from education and use in the production of goods and services

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Definitions:

Par Value

A nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its actual market value.

Government Of Canada

The federal administration and institutions of Canada, responsible for national policy and governance.

Inflation Premium (IP)

The premium added to the real risk-free rate of interest to compensate for the expected loss of purchasing power. The inflation premium is the average rate of inflation expected over the life of the security.

Default Risk Premium (DRP)

The additional yield that investors demand to compensate for the risk of default by the issuer of a bond beyond the risk-free rate.