Another Term to Describe the Normal Rate of Return on Capital

question 381

Multiple Choice

Another term to describe the normal rate of return on capital is the

• A) fixed cost of capital.
• B) depreciation cost of capital.
• C) opportunity cost of capital.
• D) monopoly rent.

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Definitions:

Physiocrats

A group of 18th-century economists who believed that the wealth of nations was derived solely from the value of land agriculture or land-based products.

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.

Land

The solid surface of the earth that is not covered by water, or the property and natural resources found on it, often considered in terms of ownership and use.

Voltaire

An influential French Enlightenment writer, historian, and philosopher known for his wit, his criticism of Christianity, and his advocacy of freedom of speech and religion.