If a Factor of Production Receives Rent, the Rent Is

question 28

Multiple Choice

If a factor of production receives rent, the rent is determined by the:

• A)price of the final good.
• B)elasticity of the factor's supply.
• C)cost of the factor's inputs.
• D)price of all other factors.
• E)all of the above.

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Definitions:

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods or services received but not yet paid for.

T-account

A graphical representation of a general ledger account that outlines the effects of transactions on account balances.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit

A financial agreement where a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.