Question on: JAMB Economics - 2024
The following are rewards for factors of production EXCEPT
A
profit
B
rent
C
interest
D
subsidy
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Correct Option: D
The factors of production are land, labor, capital, and entrepreneurship. Each factor receives a reward for its contribution to the production process:
- Land receives rent.
- Labor receives wages.
- Capital receives interest.
- Entrepreneurship receives profit.
A subsidy, however, is a financial assistance provided by the government to producers, and is not a reward for a factor of production.
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