The Key Distinction Between a Factor of Production and an Input

question 193

Multiple Choice

The key distinction between a factor of production and an input is that:

• A)an input is an enduring source of income, but a factor of production is used up in the production process.
• B)a factor of production earns income from selling its services over and over again but an input cannot.
• C)an input earns income from selling its services over and over again but a factor of production cannot.
• D)a factor of production has limited earning potential.

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Definitions:

Redeem

The act of exchanging a financial security or coupon for its cash value or for goods and services as specified.

Prior To Maturity

A term indicating a situation or action that occurs before a financial instrument, such as a bond, reaches its maturity date.

Callable Bonds

Bonds that can be repurchased by the issuer before their maturity date at a specified call price.

Financing Corporations

Entities that provide financial support for businesses, typically through loans or equity investments.