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:

Services

Intangible products provided to consumers, such as healthcare, education, and banking, which do not result in ownership of physical goods.

Educational Services

Professional services that encompass teaching and learning activities, including instruction, training, and other support provided by educational institutions.

NAFTA Agreement

Stands for North American Free Trade Agreement, a treaty entered into by the United States, Canada, and Mexico; effective January 1, 1994, to eliminate trade barriers and facilitate the exchange of goods and services.

North America

A continent located in the northern hemisphere, bordered by the Arctic Ocean to the north, the Atlantic Ocean to the east, the Pacific Ocean to the west, and South America to the south.