Introduction to Economics 1 Deneme Sınavı Sorusu #726685

Which of the followings is compensation for the use of capital by firms called?


Surplus

Demand

Credit

Interest

Rent


Yanıt Açıklaması:

Although money is not a factor of production, firms often use credits to buy or hire the capital they use for production, and pay interest in return. Even if they use their own funds, the opportunity cost of using them is the interest foregone. So, the compensation for the use of capital is interest. Therefore, the correct option is D.

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