Rent is the reward for which factor of production?
Answer and explanation
Correct answer: Land
Rent is the factor income earned by the owner of land or other natural resources for allowing them to be used in production. Therefore, land is the correct answer, option B. Labour receives wages, capital receives interest, and entrepreneurship receives profit. These standard factor-reward relationships help distinguish the other options.
Frequently asked questions
What is the correct answer to this question?
Land
Why is this the correct answer?
Rent is the factor income earned by the owner of land or other natural resources for allowing them to be used in production. Therefore, land is the correct answer, option B. Labour receives wages, capital receives interest, and entrepreneurship receives profit. These standard factor-reward relationships help distinguish the other options.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - Market price and factor cost.
