The Prices Paid to a Productive Resource Usually Perform an Incentive

question 138

Multiple Choice

The prices paid to a productive resource usually perform an incentive function except with what resource?

• A) land
• B) labor
• C) capital
• D) entrepreneurial ability

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Definitions:

Equilibrium Wage

The earnings rate at which the workforce offered balances the workforce demanded.

Binding

In economic terms, refers to a price floor or ceiling that is enforced and has an effect on the market, preventing it from reaching equilibrium.

Price Ceiling

A legally established maximum price for a good or service, aimed at preventing prices from rising too high.

Crude Oil

A natural petroleum product that's extracted from the earth, unrefined, and used as a primary feedstock for fuel and various chemical productions.