The Factors of Production Owned by Households Are

question 41

Multiple Choice

The factors of production owned by households are

• A) resources.
• B) commodities and income.
• C) goods and services.
• D) consumer products.
• E) land, labor, capital, and entrepreneurial ability.

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Definitions:

Cash Inflows

Money received by a business from its operational, investing, and financing activities.

Discount Rate

The rate utilized in calculating the present value of anticipated future cash flows in discounted cash flow analysis.

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in computing depreciation.

Discount Rate

In finance, this rate is used to calculate the present value of future cash flows; in a broader context, it can also refer to the interest rate charged by banks to their most creditworthy customers.