ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rent, rates, wages, and enterprise
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land, labour, capital, and enterprise
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dividends, interest, rent, and wages
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rent, interest, profits, and wages
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Detailed explanation-1: -The factors of production are rewarded for their contribution to the production of goods and services. The reward for land is rent, for labor it is wages, for capital it is interest and the reward for entrepreneurship is called profit.
Detailed explanation-2: -The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
Detailed explanation-3: -As wages are being paid for services of labor, interest is paid for the services of capital, rent is paid for the services provided by the land or other immovable assets and profit is for the factor of payment to entrepreneurship.
Detailed explanation-4: -Land as a factor received rent as a reward. The land required by the production unit is provided by the household units for rent. This allows the production unit to manufacture products which are then bought by household units.
Detailed explanation-5: -Land: Rent is a reward for the use of land. Labour: Wages are the reward for labour. Capital: Interest is the reward for capital. Entrepreneur: Profit is the reward for an entrepreneur.