Answer to Question #146296 in Economics of Enterprise for Jimmy godwin

Question

The money payment made to owners of land and Labour are

Answer 1

The factor of payment is the money people get for giving out factors of production which includes capital, labour, land and entrepreneurship. In return of a productive service a payment is made. For instance, rent is paid for services given by land, interest paid for capital services, wages for labour services and profit paid for entrepreneurship services.

Therefore, money payment made to owners of land and labour are rent and wages .