Which of the Following Resources Earns the Highest Economic Rent

question 82

Multiple Choice

Which of the following resources earns the highest economic rent as a proportion of total earnings?

• A)a resource specialized in one task
• B)a nonspecialized resource
• C)a resource with inelastic demand
• D)a resource with low demand
• E)a resource with unit-elastic demand

---

Definitions:

Statement of Cash Flows

A financial document detailing the inflow and outflow of cash within a company, showing how changes in the balance sheet and income affect cash and cash equivalents.

Parentheses

Symbols used in writing () to include additional information or clarify something within a sentence.

Indirect Method

A way to present the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and operational activities to yield cash flow from operations.

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life.