Which of the Following Is Correct with Respect to the Factors

question 28

Multiple Choice

Which of the following is correct with respect to the factors of production?

• A) The "labour" factor recognizes that it is importance to have labour unions to offset the power of management.
• B) "Capital" is a more important factor than "labour."
• C) As the Canadian economy has become larger and more complex, the importance of entrepreneurs has declined.
• D) Unlike land, labour, and capital, information can be shared without being diminished.
• E) Human resources is an example of the "natural resources" factor.

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Definitions:

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for some types of loans and lines of credit.

Effective Annual Interest Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it reflects the total interest that will be paid or earned over a year, taking into account the effect of compounding.

Inventory Turnover Rate

A financial metric measuring how often a company's inventory is sold and replaced over a period.

Sales

The total amount of goods or services sold within a specific time frame, indicating the performance and growth of a business.