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- Subject
- Production Factorseconomics-mcqs › production-factors
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Explanation
Capital income earned by firms owned capital includes interest, dividends, and retained earnings. However, an increase in inventory stock is not considered a form of capital income.
More Production Factors MCQs
Practice related questions from the same subject.
- 1.Imagine a war fought using biological weapons that eliminate human labor but leave physical capital intact. Compared to the pre-war period, what changes would you expect in the equilibrium wages and rental prices after the conflict?
- 2.How does a rise in automobile prices affect the demand for autoworkers?
- 3.At what point should a profit-driven competitive firm continue to employ additional workers?
- 4.Why does the demand curve for an individual firm's factor of production slope downward?
- 5.Which of the following is NOT a likely result of a reduction in the supply of agricultural tractors?
- 6.How does a reduction in the number of fishermen affect the market for capital goods, such as fishing boats, in the fishing sector?
- 7.In a perfectly competitive market, the value of the marginal product of capital represents the firm's what?
- 8.What happens to the additional output when a factor shows diminishing marginal returns as more units are employed?
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