Profits, Rents, Interest, and Royalties Are Examples Of

question 34

Multiple Choice

Profits, rents, interest, and royalties are examples of:

• A)consumption.
• B)labor income.
• C)capital income.
• D)investment.

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Definitions:

Constant-cost Industry

An industry in which the costs of production do not change as the industry's total output changes.

Competitive Market

A market where there are many buyers and sellers so that no single buyer or seller can influence the price or market conditions.

Economic Profits

The variance between a corporation's total earnings and all its explicit and implicit expenditures.

Zero-profit Equilibrium

A situation in a perfectly competitive market where firms just cover their costs, leaving no surplus for economic profit.