What is the distribution of national income currently among the owners of the factors of production—land, labor, capital, and entrepreneurship?
What will be an ideal response?
According to the text, in 2013, rent was 4 percent of national income; interest payments accounted for 3.2 percent; corporate profits claimed 14 percent; income from other business proprietorships represented 9.3 percent; and the wage and salary return to labor was about 60 percent of national income.
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Suppose a change in the stock market makes people feel wealthier, increases consumption, and shifts the aggregate-demand curve right. The change in the stock market must have been
a) an increase in stock prices. b) a decrease in stock prices. c) the stock market has no effect on wealth and consumption. d) no change in stock prices.
To achieve a high standard of living, a nation should: a. increase welfare payments to the poor
b. use less capital and more labor in the production process. c. promote economic growth. d. increase the tax deduction for child dependents.