Question

The return from the sale, whether permanently or temporarily, of the factors of production—the land, labor, and capital—used in manufacturing and delivering the goods and services that businesses offer to consumers or households is called a __________.A. capital account B. current account C. trade deficit D. balance of international payments E. factor income

Answer 1

E. factor income

Step-by-step explanation:

Factor income is the return from the sale of factors of production, such as land, labor, and capital used in manufacturing and delivering the goods and services that businesses offer to consumers. Therefore, E is the correct answer.

The trade deficit is the difference between imports and export. So, "C" cannot be the choice.

The balance of international payments is the economic activity and transactions between the resident country and the rest of the world. So, it cannot be the answer.