Answer to Question #84699 in Microeconomics for Emma

Question

Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest, how much are households paid for providing entrepreneurial ability?

Answer 1

Households paid for providing entrepreneurial ability:

100-60-10-20=$10 billion