When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
Correct answer: C. increases in stocks of goods
- A. interest
- B. dividends
- C. increases in stocks of goods
- D. retained earnings
Explanation
Interest, dividends, and retained earnings are returns to capital ownership. An increase in stocks of goods is an investment or inventory change, not a form of capital income.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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