Which Statement About Incomes Earned by Factors of Production Is

question 161

Multiple Choice

Which statement about incomes earned by factors of production is false?

• A)Natural resources earn rent.
• B)Entrepreneurship earns profit.
• C)Land earns rent.
• D)Capital earns profit.
• E)Labour earns wages.

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Definitions:

Monthly Salary

Regular payment from an employer to an employee, typically spread over a month, for performing agreed-upon professional tasks.

Commission

A fee or percentage of a transaction value paid to agents or employees for conducting a piece of business or a service.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Commission Only

A payment model where compensation is based solely on the amount of sales or transactions generated, with no base salary.