The Demands for Factors of Production Are Ultimately Determined By

question 7

Multiple Choice

The demands for factors of production are ultimately determined by:

• A)each factor's marginal product.
• B)the demand for final consumer goods.
• C)the state of technology.
• D)relative income distributions.
• E)none of the above.

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Definitions:

Deferred Taxes

are taxes that are accumulated due to temporary differences between the accounting income and taxable income, and will be paid or received in the future.

Consolidated Statement

Financial statements that aggregate the financials of a parent company and its subsidiaries, presenting the finances as if the group were a single entity.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without adjusting for changes in market value unless there is a decline in value judged to be other than temporary.

Controlling Interest

Ownership interest in a business entity through which a party has the power to influence or direct its policies and management.