The Payments in Return for Labor and Capital Are _____,Respectively

question 52

Multiple Choice

The payments in return for labor and capital are _____,respectively.

• A)profit and rent
• B)interest and profit
• C)rent and wages
• D)profit and wages
• E)wages and interest

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Definitions:

Entrepreneurial Talent

The specific skills, creativity, and innovation that individuals bring to starting and managing new ventures or businesses.

Forgone Interest

The potential interest earnings lost by choosing to invest capital in one option over an alternative that offers a higher return.

Short-Run Adjustment

The process by which businesses alter their production levels or inputs in response to short-term changes in market conditions.

Local Bakery

A place of business that specializes in producing and selling bread, cakes, and other baked goods to consumers within a specific area.