Which term describes income earned when selling or renting a factor of production?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the Economics Test Out Exam. Utilize flashcards and tackle multiple choice questions with detailed explanations. Get exam-ready!

Multiple Choice

Which term describes income earned when selling or renting a factor of production?

Explanation:
Income earned for providing a factor of production is called a factor payment. This term covers payments to all resources—labor, land, capital, and entrepreneurship. Wages are just payments for labor, and interest is payment for capital loaned, while dividends are distributions to shareholders. Factor payment is the umbrella label that includes these various forms of income tied to supplying resources.

Income earned for providing a factor of production is called a factor payment. This term covers payments to all resources—labor, land, capital, and entrepreneurship. Wages are just payments for labor, and interest is payment for capital loaned, while dividends are distributions to shareholders. Factor payment is the umbrella label that includes these various forms of income tied to supplying resources.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy