The following are rewards for factors of production EXCEPT

Source: JAMB · 2024

The following are rewards for factors of production EXCEPT

  1. interest
  2. profit
  3. rent
  4. subsidy ✓
Explanation

Factors of production earn specific rewards: land earns rent, labor earns wages, capital earns interest, and entrepreneurs earn profit.

A subsidy is a government payment to help producers. It is not earned by any factor of production.

Remember: Rent, wages, interest, and profit are factor rewards. Subsidies come from government.

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