Factor Income

question 11

Multiple Choice

Factor income

• A)consists largely of interest, dividends, and other income on foreign investments.
• B)is a theoretical construct of the factors of production, land, labor, capital, and entrepreneurial ability.
• C)is generally a very minor part of national income accounting, smaller than the statistical discrepancy.
• D)none of the above

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Definitions:

Billion

A numerical value representing one thousand million (1,000,000,000) in the short scale, and commonly used in financial contexts.

Year

A period of time consisting of 12 months or 365 days (366 in a leap year), used as a basic unit of time for calendrical purposes.

Trade Surplus

A situation in which a country's exports exceed its imports, leading to a positive balance of trade.

Export

Goods or services sold by a country to another country, contributing positively to the selling country's balance of trade.