Which of the Following Statements Is Correct

question 173

Multiple Choice

Which of the following statements is correct?

• A)Economic profits can properly be regarded as the salaries received by the hired managers of corporations.
• B)Economic rent is a price paid for productive land resources whose supply is perfectly inelastic.
• C)Economic profits would be nonexistent in a dynamic, purely competitive economy.
• D)Economic, or pure, profit is the minimum return that entrepreneurs must receive to continue in a particular line of production.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them entirely, typically associated with ownership of 20% to 50% of voting stock.

Held-to-maturity Debt Securities

Investments in bonds or other debt securities that a company intends and is able to hold until they mature.

Current Assets

Short-term financial resources a company holds, including cash, marketable securities, receivables, and inventory, which are expected to be converted into cash within a year.

Foreign Exchange Rate

Foreign Exchange Rate is the price at which one currency can be exchanged for another currency, which can fluctuate based on market conditions.