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In a market economy (a/k/a “capitalism”), the function of (which one is true)           a.       rent...

In a market economy (a/k/a “capitalism”), the function of (which one is true)

          a.       rent is to guide capital funds into their most valued uses.

          b.       wages is to guide various kinds of labor into their most valued endeavors.

          c.       interest is to guide natural resources into their most valued uses.

          d.       profit is to guide entrepreneurship into spiritual endeavors.

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Answer #1

Solution: wages is to guide various kinds of labor into their most valued endeavor

Explanation: In the market economy the prices and production would be determined with the unrestricted competition among the privately owned businesses. The factors of production include land, labor, capital and entrepreneurship; and the wage includes guidance for labor on the most valued endeavor. Interest guide capital funds on the most effective uses. The profit does not guide entrepreneurship on any spiritual endeavors

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