Money That Must Be Paid for the Use of Factors

question 125

Multiple Choice

Money that must be paid for the use of factors of production such as labour and capital is an:

• A) explicit cost.
• B) accounting profit.
• C) implicit cost.
• D) economic profit.

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Definitions:

Redistribution of Income

A policy or process through which income is shifted from one segment of the population to another, often through taxation and welfare programs.

Income Inequality

Refers to the uneven distribution of income and wealth across the population, leading to disparities between individuals or groups.

Income Taxes

Taxes levied by governments on the income earned by individuals and entities, typically progressive in nature, meaning the rate increases with the income level.

Education and Training

The process of acquiring knowledge, skills, and competencies through teaching, study, or experience.