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Identify the four factors of production, and tell what type of income is earned by each factor.
Solution
Four factors :Labor, Land, Capital,entrepreneurship
entrepreneurship : Earns profits for his use of skills and taking the risk.
Land: Earns rent for its use
Labor : Earns wage income for providing services
Capital: Earns interest income f

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  • 1. Identify the four factors of production, and tell what type of income is earned by each factor. Solution Four factors :Labor, Land, Capital,entrepreneurship entrepreneurship : Earns profits for his use of skills and taking the risk. Land: Earns rent for its use Labor : Earns wage income for providing services Capital: Earns interest income f