If a Factor of Production Has No Production Cost and Has

question 72

Multiple Choice

If a factor of production has no production cost and has a fixed supply, then payments to that factor constitute what economists call

• A) abnormal profits.
• B) economic rent.
• C) normal profits.
• D) interest payments.

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Definitions:

Democratic Party

A major political party in the United States that historically has advocated for social welfare, civil rights, and governmental intervention in the economy to promote social justice.

Economic Opportunities

Prospects or chances for individuals or businesses to grow financially, commonly measured by income, employment possibilities, and market potential.

Free Blacks

Individuals of African descent who were legally free from slavery, significantly impacting societies and economies, especially in pre-Civil War America.

Free Soil Party

A political party active in the 1840s and 1850s in the United States, which opposed the expansion of slavery into the western territories.