Which of the Following Accurately Describes How Earnings from Capital

question 136

Multiple Choice

Which of the following accurately describes how earnings from capital eventually get paid to households?

• A)Households can own a stock of capital and rent it to firms.
• B)Households lend money to firms, who then pay interest to the households.
• C)Households that own stock in firms receive dividends.
• D)All of the above are correct.

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Definitions:

Cognitive Therapy

A type of psychotherapy that focuses on changing negative patterns of thought to improve emotional well-being and behavior.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Bulimia

An eating disorder characterized by episodes of binge eating followed by purging to prevent weight gain.

Exposure Therapy

A psychological treatment that involves confronting fears directly and in a controlled manner to reduce the fear response over time.