Which of the Following Resources Generates the Largest Share of Household

question 127

Multiple Choice

Which of the following resources generates the largest share of household income in the United States?

• A) labor
• B) land
• C) physical capital
• D) entrepreneurial ability
• E) dividends

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Definitions:

Quantity Effect

the change in the quantity of goods sold or consumed as a result of a change in price, holding other factors constant.

Profit

The financial gain or surplus remaining after all operating expenses, taxes, and costs have been subtracted from total revenue.

Duopoly

A market structure dominated by two firms, often leading to strategic behaviors and outcomes different from those in more competitive markets.

Two Firms

Refers to a market situation often analyzed in oligopoly models where only two companies dominate the supply in the market.