Which of the Following Statements Is Correct

question 67

Multiple Choice

Which of the following statements is correct?

• A) Economic profits can properly be regarded as the salaries received by the hired managers of corporations.
• B) Economic rent is a price paid for productive land resources whose supply is perfectly inelastic.
• C) Economic profits would be nonexistent in a dynamic, purely competitive economy.
• D) Economic, or pure, profit is the minimum return that entrepreneurs must receive to continue in a particular line of production.

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Definitions:

Oral Contracts

Agreements made through spoken communication that are binding, albeit harder to prove than written contracts.

Prenuptial Agreements

Legal contracts entered into before marriage, outlining the division of assets should the marriage end in divorce.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.

Partial Performance

The act of completing a portion of the obligations outlined in a contract, often considered in legal disputes about contract enforcement.