Question

Suppose that businesses buy a total of $130 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $72 billion in wages, $16 billion in rent, and $26 billion in interest, how much are households paid for providing entrepreneurial ability

Answer 1

Answer: Household would paid $16 for entrepreneurial ability .

Explanation:

Since we have given that

Total amount the businesses paid for four resources = $130

Amount that the household receive in wages = $72

Amount that the household receive in rent = $16

Amount that the household receive in interest = $26

Total amount the household would receive is given by

`72+16+26\\\\=\$114`

So, Amount the household paid for entrepreneurial ability is given by

`Expenses-Revenue\\\\=\$130-\$114\\\\=\$16`

Hence, Household would paid $16 for entrepreneurial ability .