Which of the Following Statements Is Correct

question 71

Multiple Choice

Which of the following statements is correct?

• A)Rent performs an incentive function, but not a rationing function.
• B)Wage rate does not perform an incentive function in the supply of labor.
• C)Profits are payments to capital resource owners.
• D)Demand is the "active," and supply the "passive," determinant of land rent.

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Definitions:

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of indirect production expenses that remain constant regardless of the volume of products manufactured, like equipment depreciation.

Deferred

Refers to actions, expenses, or incomes that are postponed or delayed to a future period instead of being recognized immediately.

Released

Released refers to products, news, or information that has been made available to the public or a specific audience.

Net Operating Income

The earnings derived from a company's day-to-day operations, after subtracting all operational expenses except interest and taxes.