ECONOMICS (CBSE/UGC NET)

ECONOMICS

SCARCITY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Most American households receive income from selling which resource?

A	Land
B	Labor
C	Capital
D	Entrepreneurship

Explanation:

Detailed explanation-1: -Households, in the Resource Market (factor market), are the owners of the productive resources (factors of production) in the circular flow model. They sell their land, labor, capital, and entrepreneurship to businesses (firms) in the Resources Market in exchange for income payments.

Detailed explanation-2: -Households receive wages for their labor, rent for use of their land, interest for use of their capital, and profit for their entrepreneurial ability.

Detailed explanation-3: -Households, in the Resource Market (factor market), are the owners of the productive resources (factors of production) in the circular flow model. They sell their land, labor, capital, and entrepreneurship to businesses (firms) in the Resources Market in exchange for income payments.

Detailed explanation-4: -In the labor market, households provide labor and receive payment from firms through wages, salaries, and benefits. Firms produce and sell goods and services to households in the market for goods and services (or product market).

There is 1 question to complete.