What is income paid to the owner of land labor or capital in return for productive service called

Social Studies

1 answer:

SSSSS [86.1K]3 years ago

7 0

The income paid to the owner of land, labor or capital, in return for productive service is called Factor Payment.

Factor payment is basically the income that is received by the person/company, who supplies the factors of production to someone or to some company and in return gets paid for them.

Now factors of production are land, labor, capital, entrepreneurship etc.

Income generated through factor payments can also be categorized accordingly, like wages are being paid for the services of labor, rent is being paid for using the land or any immovable asset, interest is paid on capital, and profit is shared with entrepreneurship.

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