Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid according to the value of its marginal product
a. only if this income is transmitted to households in the form of interest.
b. only if this income is transmitted to households in the form of dividends.
c. only if this income is transmitted to households in the form of interest or dividends.
d. regardless of whether this income is transmitted to households in the form of interest or dividends or whether it is kept within firms as retained earnings.
d
You might also like to view...
________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business
A) Deliberate dumping B) Ravaging dumping C) Voracious dumping D) Predatory dumping
An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market. As a result, U.S. GDP increases by
a. $200. b. $300. c. $500. d. $600.