In Terms of Contribution to Total Income, the Single Most

question 50

Multiple Choice

In terms of contribution to total income, the single most important factor of production is:

• A) capital.
• B) labor.
• C) natural resources.
• D) entrepreneurship.

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Definitions:

Normal Profit

The minimum profit necessary for a company to remain competitive in its market, covering its opportunity costs.

Replacement Cost

The cost required to replace an asset with a new one of similar kind and quality at current prices.

Cost Of Completion

The estimated expenses associated with finishing a project, product, or service in its entirety.

Normal Profit

The minimum amount of profit necessary for a company to remain competitive in the market, often considered a breakeven profit.