Question

Explain how labour and entrepreneurship are rewarded

Answer 1

Answer:

The compensation given to labourers in return for their productive work is called wages (or compensation of employees). Land is a passive factor whereas labour is an active factor of production. ... All man-made goods which are used for further production of wealth are included in capital

Answer 2

Labour and entrepreneurship are awarded by wages and profit respectively.

Explanation:

1. A business idea can be successful only when a lot of efforts are put in by the labor and entrepreneur for turning an idea into actual process.
2. The hard work of labor is rewarded by the payment of wages and salaries to the workers.
3. Similarly, the efforts of an entrepreneur and his creativity is rewarded by his goodwill in the market and profits earned by the business.