Payments to the Factors of Production Are

question 18

Multiple Choice

Payments to the factors of production are

• A) rent, mortgage, interest, and bonds.
• B) rent, interest, bonds, and profit or loss.
• C) rent, wages, interest, and profit or loss.
• D) rent, wages, profit or loss, and bonus.
• E) land, labor, capital, and entrepreneurship.

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Definitions:

Average Cost

The total cost of production divided by the number of goods produced, also known as cost per unit.

Copper

A reddish-brown, malleable, ductile metallic element with high electrical and thermal conductivity, used in many alloys and as electrical conductors.

Zinc

A metallic chemical element with the symbol Zn and atomic number 30, used in alloys and as a protective coating for iron and steel.

Factor Prices

The prices of inputs such as labor, capital, land, and raw materials used in the production of goods or services.