Interest is paid because
A). Capital is scarce
B). Capital is productive
C). Capital is attractive
D). Capital is surplus
Capital is scarce
Interest is paid because Capital is scarce. The borrower can get additional income from borrowed capital and in easily afford to pay interest. Hence it is scarcity.
3. In the long run, any firm will eventually leave the industry if
4. Consumer surplus is highest in case of
6. Which of the following taxes is not levied by the Union Government
7. It describes the law of supply
8. The term 'marginal' in economics means
10. A tax which is paid by the person on whom the tax is incident is called a :