Question

What are the factors of production and their remuneration?

Answer 1

Hello dear......


ᴀs ᴡᴀɢᴇs ᴀʀᴇ ʙᴇɪɴɢ ᴘᴀɪᴅ ғᴏʀ sᴇʀᴠɪᴄᴇs ᴏғ ʟᴀʙᴏʀ, ɪɴᴛᴇʀᴇsᴛ ɪs ᴘᴀɪᴅ ғᴏʀ ᴛʜᴇ sᴇʀᴠɪᴄᴇs ᴏғ ᴄᴀᴘɪᴛᴀʟ, ʀᴇɴᴛ ɪs ᴘᴀɪᴅ ғᴏʀ ᴛʜᴇ sᴇʀᴠɪᴄᴇs ᴘʀᴏᴠɪᴅᴇᴅ ʙʏ ᴛʜᴇ ʟᴀɴᴅ ᴀɴᴅ ᴘʀᴏғɪᴛ ɪs ғᴏʀ ᴛʜᴇ ғᴀᴄᴛᴏʀ ᴏғ ᴘᴀʏᴍᴇɴᴛ ᴛᴏ ᴇɴᴛʀᴇᴘʀᴇɴᴇᴜʀsʜɪᴘ.

ᴛʜᴇʏ ᴀʀᴇ ʙʀᴏᴀᴅʟʏ ᴅɪᴠɪᴅᴇᴅ ɪɴ ᴛʜᴇ ᴛʜʀᴇᴇ ғᴀᴄᴛᴏʀs ᴏғ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ: ʟᴀɴᴅ, ʟᴀʙᴏʀ, ᴀɴᴅ ᴄᴀᴘɪᴛᴀʟ.

Answer 2

Factors of production comprise four things which are Land, Labour, Capital and enterprise.

Remuneration of them is known as rent, wages, interest and profit respectively.

The production of goods and services which we see while we look around is actually the combined efforts of factors of production (land, labour, capital and enterprise)