The rental price of capital is the:
A. equilibrium wage.
B. interest paid on loans.
C. amount producers pay to use a factor of production.
D. value of the expected flow of income gained from ownership.
Answer: C
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According to the factor price equalization theorem, the ________ factor should oppose free trade policies in any given country
A) abundant B) scarce C) neither D) Can't tell without more information
The Ricardian model of comparative advantage lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade is mutually beneficial to the countries that engage in it.