Which Statement Is NOT True About the Factor Distribution of Income

question 310

Multiple Choice

Which statement is NOT true about the factor distribution of income?

• A) It is the division of total income among labour,land,and capital.
• B) Labour receives the bulk of the income in the modern Canadian economy.
• C) The returns to human capital are easily measured.
• D) A part of the proprietor's income should be considered wages that the business owners pay themselves.

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Definitions:

Profit-Maximizing

A strategy where a firm determines the price and production level that generates the highest possible profit.

MRP

The additional revenue a firm gains from hiring an additional unit of input, such as labor, in the production of goods.

MRC

Marginal Revenue Cost, NO.

Pure Competition

A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers.