Author Question: What are the payments each factor of production receives? What will be an ideal ... (Read 44 times)

lak · **on:** Jun 30, 2018

What are the payments each factor of production receives?

What will be an ideal response?

Question 2

The amount of consumption expenditure that takes place when income is zero is

A) called induced consumption.
B) called zero-based consumption.
C) equal to zero.
D) called autonomous consumption.
E) equal to saving.

dlook33 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Rent is paid for the use of land. Wages are paid for the services of labor. Interest is paid for the use of productive capital. Entrepreneurs earn a profit.

Answer to Question 2

D