A Normal Rate of Return on Capital

question 21

Multiple Choice

A normal rate of return on capital

• A) is a return just sufficient to keep investors satisfied.
• B) sends a signal to investors to move their capital elsewhere.
• C) does not allow a business to keep its capital equipment in the long run.
• D) represents positive economic profit.

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Definitions:

Recognition

A measure of memory in which the person need only identify items previously learned, as on a multiple-choice test.

Recall

A measure of memory in which the person must retrieve information learned earlier, as on a fill-in-the-blank test.

Memory

The faculty by which the mind stores and remembers information.

Life Satisfaction

The degree to which an individual judges the overall quality of their life as being good.