ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The reward for working
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The reward for the service provided by a factor of production, including labour
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The reward for the service provided by an employee
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The reward for the service provided the government
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Detailed explanation-1: -The correct option is C Wages. The use of physical, mental and intellect of a person for money is known as labour. This as a factor of production receives wages as its rewards. Labourers use their manpower to complete the work at hand and can enhance their manpower through training and education.
Detailed explanation-2: -Labor as a factor of production refers to the effort that individuals exert when they produce a good or service. For example, an artist producing a painting or an author writing a book. Labor itself includes all types of labor performed for an economic reward, such as mental and physical exertion.
Detailed explanation-3: -The Incentive / Reward in respect of Labour is called wages.
Detailed explanation-4: -Factor income is the flow of income that is derived from the factors of production-the general inputs required to produce goods and services. Factor income on the use of land is called rent, income generated from labor is called wages, and income generated from capital is called profit.
Detailed explanation-5: -Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else.