If an Individual Possesses an Ability That Others Cannot Acquire

question 201

Multiple Choice

If an individual possesses an ability that others cannot acquire, payment to that individual is

• A)partly economic rent.
• B)a return called the real wage.
• C)a return from investment in human capital.
• D)comparable to the return to well-trained nurses.

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Definitions:

Interest Revenue

Income earned by an entity from lending money or from investments in interest-bearing assets like bonds, savings accounts, or loans.

Unadjusted Trial Balance

A list of all the ledger accounts with their balances at a specific point in time before any adjustments have been made.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits in the accounting process.

Unearned Rent

Income received for rent that has yet to be earned, typically because the service period has not yet been completed; it is recorded as a liability.