Which Statement About Incomes Earned by Factors of Production Is

question 164

Multiple Choice

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

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

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Definitions:

Semiannually

Pertains to an event or process that occurs twice a year.

Maturity

The date on which a financial instrument (such as a bond) or an investment becomes due for payment or is fully repaid.

Contract Rate

The interest rate stipulated in a contract or agreement, often related to loans, bonds, or other financial instruments.

Market Rate

The prevailing price or interest level determined by the supply and demand dynamics in a competitive marketplace.