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- Subject
- Production Factorseconomics-mcqs › production-factors
- Published
- 30 May 2019
- Last updated
- 28 May 2026
When capital is held by a company rather than directly by households, which of the following is NOT a form of capital income?
Multiple choice question for Production Factors. Select an option, then review the explanation below.
Explanation
Capital income earned by firms owned capital includes interest, dividends, and retained earnings. However, an increase in inventory stock is not considered a form of capital income.
More Production Factors MCQs
Practice related questions from the same subject.
- 1.Imagine a war fought using biological weapons that eliminate human labor but leave physical capital intact. Compared to the pre-war period, what changes would you expect in the equilibrium wages and rental prices after the conflict?
- 2.How does a rise in automobile prices affect the demand for autoworkers?
- 3.At what point should a profit-driven competitive firm continue to employ additional workers?
- 4.Why does the demand curve for an individual firm's factor of production slope downward?
- 5.Which of the following is NOT a likely result of a reduction in the supply of agricultural tractors?