Which of the Following Statements Is Correct

question 88

Multiple Choice

Which of the following statements is correct?

• A) Rent performs an incentive function, but not a rationing function.
• B) Wage rate does not perform an incentive function in the supply of labor.
• C) Profits are payments to capital resource owners.
• D) Demand is the "active," and supply the "passive," determinant of land rent.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Revenue

Marginal revenue is the additional income earned from selling one more unit of a good or service.

Total Revenue

The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.

Marginal Revenue

The additional income obtained from selling one more unit of a product or service.