Which Resource Generates the Largest Share of Household Income in the United

question 29

Multiple Choice

Which resource generates the largest share of household income in the United States?

• A)Labor
• B)Land
• C)Capital
• D)Entrepreneurial ability
• E)Money

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Definitions:

Perfect Asset Market

A theoretical financial market where securities are perfectly liquid, information is freely available to all investors, and there are no transaction costs, allowing for the efficient allocation of assets.

Annual Interest Rate

The percentage rate indicating the total amount of interest paid or earned over a one-year period.

Competitive Market Price

The price established through competition where the amount supplied is equal to the amount demanded.

Interest Rate

The segment of a loan that results in interest fees for the borrower, commonly presented as an annual percent.