Which of the Following Is NOT a Factor of Production

question 116

Multiple Choice

Which of the following is NOT a factor of production?

• A) The wages paid to workers.
• B) The water used to cool a nuclear power plant.
• C) The effort of farmers raising cattle.
• D) The management skill of a small business owner.

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Definitions:

Preferred Stock Dividends

Dividends paid on preferred shares of a company which typically have a fixed dividend rate and priority over common stock in dividend payments.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.