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suter [353]
3 years ago
15

What is the income people receive for supplying factors of production, such as land, labor, or capital, called?

History
2 answers:
Assoli18 [71]3 years ago
6 0
It's called factor payments.
Gnom [1K]3 years ago
5 0

Factors of production are used for the production of good and services. The payments made to the owners of the factors of production as a retribution for their usage, have specific names for each factor:

  • The payment for the factor 'land' is denominated rent.
  • The payment for the factor 'labor' is called wage.
  • The payment for the factor 'capital' is denominated interest.
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