In the Factor Market,firms ________ and Households ________

question 187

Multiple Choice

In the factor market,firms ________ and households ________.

• A) hire land, labor, capital, and entrepreneurship services; purchase goods and services
• B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services
• C) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit
• D) purchase goods and services; supply goods and services
• E) supply goods and services; purchase goods and services

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of a financial instrument, typically the principal plus any final interest payments.

60-Day Note

A type of short-term debt where the repayment is due 60 days after issuance.

360-Day Year

An accounting simplification that assumes there are 360 days in a year to facilitate easier interest calculations.

Direct Write-Off Method

An accounting practice where bad debts are written off against income at the time they are determined to be uncollectible, instead of being provided for in advance.