Identify the four factors of production, and tell what type of income is earned by each factor
What will be an ideal response?
The factors of production are land, which represents all the gifts of nature; labor, the work effort people put into producing goods and service; capital, goods that have been produced and are used as a productive resource to help produce other goods and services; and entrepreneurship, the human resource that organizes all the other factors of production. Land earns rent, labor earns wages, capital earns interest, and entrepreneurship earns profit or losses.
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An arms race is an example of a _____
a. positive externality b. inframarginal positive externality c. Coasean solution d. prisoners' dilemma
If an event is likely to occur, which probability is a reasonable estimate?
A) 0.32 B) 0.79 C) 1 D) Not enough information to determine.