The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) the skill level of the economy's labor force. | Homework.Study.com (2024)

Question:

The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) the skill level of the economy's labor force.

Is this statement true or false?

Money:

Money is any item that is used in the exchange of goods and services. The three types of money are commodity money, representative money, and fiat money. Money's most prominent role is serving as a medium of exchange.

Answer and Explanation:

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The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) the skill level of the economy's labor force.  | Homework.Study.com (2024)

FAQs

The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) the skill level of the economy's labor force. | Homework.Study.com? ›

Answer and Explanation:

What are the four factors that affect the cost of money? ›

The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) inflation.

What are the four fundamental factors of this system? ›

They understand that there are four fundamental forces — gravity, electromagnetism, and the strong and weak nuclear forces — that are responsible for shaping the universe we inhabit.

What are the four fundamental factors affect the supply of? ›

Question: Four fundamental factors affect the supply of, and demand for investment capital, hence the select of money. These factors are: production opportunities, time preferences for consumption, risk, and inflation.

What are the 4 factors that affect price? ›

Four Major Market Factors That Affect Price
  • Costs and Expenses.
  • Supply and Demand.
  • Consumer Perceptions.
  • Competition.

What are the four most fundamental factors that affect the cost of money? ›

Answer and Explanation:

The four most major factors that impact the cost of money include production opportunities, time preferences for consumption, risk, and inflation.

What are the four 4 factors? ›

Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.

What are the fundamental factors? ›

five fundamental factors are understood to be a spectrum of wave forms described as ethereal, aerial, luminous, liquid, and solid Factors (in order of decreasing wavelength).

What are the names of the four main factors? ›

The economic inputs used to make a profit are called factors of production. According to traditional economic theory, there are four main factors of production: land, labor, capital, and entrepreneurship.

What are the four factors affecting supply? ›

The four factors that can shift the supply curve include natural conditions, input prices, technology, and government. Natural conditions include any natural event that may favorably or unfavorably impact production.

What are the 4 factors that cause a change in supply? ›

Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers.

What are four 4 factors that influencing the elasticity of supply? ›

There are numerous factors that directly impact the elasticity of supply for a good including stock, time period, availability of substitutes, and spare capacity. The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price.

What are the 4 factors of production cost? ›

Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.

What are the four factors affecting the cost of capital? ›

The cost of capital is affected by several factors, including interest rates, credit rating, market conditions, company size, industry, and inflation.

What are the four 4 different costs to consider in the production cost? ›

Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.

What are the four factors that affect demand for money? ›

Answer and Explanation: The demand for money gets affected by several factors such as the interest rate, the level of income, inflation and the uncertainties in the future.

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