The Largest Component of National Income Is

question 60

Multiple Choice

The largest component of national income is

• A) compensation of employees.
• B) rental income.
• C) corporate profits.
• D) proprietors' income.

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Definitions:

Firm's Costs

The expenditures incurred by a company in the process of producing goods or services, including both fixed and variable costs.

Input Decisions

Concerns the selection and use of resources, such as labor, materials, and capital, that are required for the production of goods or services.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust fully to changes.

Lemonade Stand

A small business venture, often used as an example for basic business principles, where lemonade is sold, typically by younger entrepreneurs.