Question

The factor of production​ _________, and the factor of production​ _______.

a. Capital earns​ rent; entrepreneurship earns wages
b. Capital earns​ interest; entrepreneurship receives a profit or incurs a loss
c. Money earns​ interest; initiative earns profit
d. Investment earns​ interest; capital incurs depreciation

Answer 1

b. Capital earns​ interest; entrepreneurship receives a profit or incurs a loss

Step-by-step explanation:

There are four factors of production.

1. Land- its return is rent. rent refers to the regular payment made to the landlord by tenants for using the land or property.

2. Labor-its return are salaries, wages or and commissions. salaries or wages refers to the regular payments paid to laborers for the services they offer.

3.capital- its return is interest. interest is the amount of money paid to an individual who provides money or capital

4. Entrepreneurship which receives a profit or incurs a loss. profit refers to a financial gain earned by an individual who provide products or services. An individual may incur a financial loss in the process of providing such goods or services