Question
In the United States, human capital or personal productive capacity, produces income for individuals when it is sold or rented in the marketplace.
Ownership of property also generates income when things such as land, machinery, or other physical property is rented, leased, or used for the production of goods and services.
Ownership of property also generates income when things such as land, machinery, or other physical property is rented, leased, or used for the production of goods and services.
A Personal productive capacity generates income for people when people take a job and get paid wages.
B Taxing physcial capital, such as machinery and property, encourages the accumulation of physical capital and will enhance the ability of the market to produce prosperity and freedom.
C Income from the ownership of property generates more income than income from the sale of human capital.
D Taxing wages because it encourages the accumulation of human capital will enhance the ability of the market to produce prosperity and freedom.
E None of the answers are correct.
F The fact that ownership of physical capital generates more income that personal productive capacity is evidence that a market economy is fundamentally tilted to favor large corporations rather than private individuals.
This question is taken from Economics 160 – Microeconomics Principles » Spring 2022 » Homework Introduction and Chapter 1
