Wages are the reward for which factor of production?
Answer and explanation
Correct answer: Labour
Wages are the payment received by workers for supplying physical or mental labour during production. Therefore, option B, labour, is correct. The other factor-reward pairs are also important: land receives rent, capital receives interest, and entrepreneurship receives profit. Thus, wages cannot correctly be matched with land, capital, or entrepreneurship.
Frequently asked questions
What is the correct answer to this question?
Labour
Why is this the correct answer?
Wages are the payment received by workers for supplying physical or mental labour during production. Therefore, option B, labour, is correct. The other factor-reward pairs are also important: land receives rent, capital receives interest, and entrepreneurship receives profit. Thus, wages cannot correctly be matched with land, capital, or entrepreneurship.
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.
