Factors of production comprise four things which are Land, Labour, Capital and enterprise. Remuneration of them is known as rent, wages, interest and profit respectively.
What is called the remuneration of capital?
rent. Explanation: rent is the right answer.
What is the remuneration of Labour?
The term “remuneration” as defined in the Basic Conditions of Employment Act 75 of 1997 (BCEA), as amended and other labour legislation includes any payment in money or in kind, or both, made or owing to any person in return for working for another person, including the State.
Is wages a factor of production?
The income that resource owners earn in return for land resources is called rent. The second factor of production is labor. The income earned by labor resources is called wages and is the largest source of income for most people. The third factor of production is capital.
What is capital in the four factors of production?
When economists refer to capital, they are referring to the assets—physical tools, plants, and equipment—that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.
Which of the following is an example of capital as a factor of production?
The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.
What are the four factor payments?
Factor payments include rent, wages, interest and profit.
How is capital important as factor of production?
More specifically, capital can be the money that companies use to buy resources, as well as the physical assets companies use when producing goods or services, such as factories and machinery. Capital is an important factor of production because it’s what allows labor and land to be purchased.
What distinguishes capital from other factors of production?
Capital is unlike land or labor in that it is artificial; it must be created by human hands and designed for human purposes. This means time must be invested before capital can become economically useful.
What is the remuneration of the four factors of production?
The remuneration of the four factors of production; land, labour, capital and enterprise are respectively, rent, wages, interest and profit. Wiki User ∙ 2010-11-03 00:51:07
What is capital as a factor of production?
Capital as a Factor of Production. When economists refer to capital, they usually mean the physical tools, plants, and equipment that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.
How are the suppliers of factors of production compensated?
Suppliers of factors of production are rewarded or compensated, which varies depending on what factors they supply. If we add up, we know the compensation as a factor income. If it is calculated for all economic actors in an economy, it is national income. Rent is a reward for land.
What is the 2nd and 3rd factor of production?
The second is labor, for which the payment is wage. The third is capital, and the payment is interest. The fourth is entrepreneurship and the remuneration is profit. What are factors of production name any four factors of production.?
