Which of the Following Relates Factors of Production to the Sources

question 85

Multiple Choice

Which of the following relates factors of production to the sources of income correctly?

• A)Land earns interest.
• B)Land earns rent.
• C)Labour earns rent.
• D)Capital earns profit.
• E)Entrepreneurship earns rent.

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Definitions:

Bank Deposits

Funds placed into a bank account for safekeeping, which may bear interest over time.

Slow Payments

Delays in the settlement of financial obligations, typically in the context of customers taking longer than agreed to pay their invoices.

Cash Receipts

The collection of cash during a period, including cash received from customers, interest, and other sources.

Change Fund

A set amount of money used for making change in cash transactions, typically reserved in a cash register.