Question:
The income payments made to resource owners of land, labour, capital and entrepreneurship respectively are
(1) interest, wages, rent and profit.
(2) rent, wages, dividends and interest.
(3) rent, profit, wages and interest.
(4) rent, wages, interest and profit.
(5) interest, wages, dividends and rent.
Correct Answer:
(4)
Answer Explanation:
In economic theory, the rewards (or factor incomes) for providing the four factors of production are strictly standardized: Land earns rent, Labour earns wages, Capital earns interest, and Entrepreneurship earns profit.
Topic: Factors of Production Year: 2019
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