Asked by ricardo caraballo on May 01, 2024
Verified
Which of the following describes a firm?
A) Purchases labor hours from workers
B) Borrows capital from investors
C) Combines labor and capital to create production,moving them from their low value use to high value use
D) All of the above
Firm
A business organization, such as a corporation, partnership, or sole proprietorship, engaged in professional, commercial, or industrial activities.
Labor Hours
Labor hours refer to the total number of hours worked by employees within a specified period, often used to measure productivity and labor costs.
Capital
Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.
- Become familiar with the influence of different economic policies and activities on the accumulation or loss of wealth.
- Recognize the essential tenets that determine how resources are allocated and their influence on the creation or destruction of wealth.
- Elucidate the mechanism by which reallocating assets and resources towards uses of greater value aids in generating wealth.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
All of the options mentioned describe a firm. A firm purchases labor hours from workers to combine with capital to create production. In order to obtain capital, a firm may borrow from investors. Ultimately, through the combination of labor and capital, a firm aims to generate value and move resources from their low-value use to high-value use.
Learning Objectives
- Become familiar with the influence of different economic policies and activities on the accumulation or loss of wealth.
- Recognize the essential tenets that determine how resources are allocated and their influence on the creation or destruction of wealth.
- Elucidate the mechanism by which reallocating assets and resources towards uses of greater value aids in generating wealth.