Factors of Production Are Different from Inputs in That Factors

question 139

Multiple Choice

Factors of production are different from inputs in that factors of production:

• A) can be used over and over again,but inputs cannot.
• B) can be used only once,whereas an input can be used over and over again.
• C) refer only to labour,while inputs refer to machinery.
• D) encompass only land and other natural factors,while inputs are ingredients.

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Definitions:

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by government bonds.

Market Value

The current price at which an asset or service can be bought or sold in a market.

Put Option Contracts

Financial contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.