Question

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

a. currency
b. revenue
c. factor payment
d. opportunity cost

Answer 1

A wage, interest, rent, and profit payment for the services of scarce resources, or the factors of production (labor, capital, land, and entrepreneurship), in return for productive services is called a factor payment. Therefore, the correct answer is option C.