Match each factor of production listed on the left with its defining economic characteristic and nature of reward on the right.
- LandEarns a reward whose aggregate supply is perfectly inelastic to price changes in the long run.
- LabourEarns a contractual reward for physical or mental exertion, subject to mobility constraints.
- CapitalEarns a contractual return for man-made assets whose supply can be increased over time.
- EntrepreneurshipEarns a residual, non-contractual return that fluctuates with business risk and uncertainty.
Cevap
Land matches with the reward whose aggregate supply is perfectly inelastic (Rent). Labour matches with contractual reward for human exertion subject to mobility constraints (Wages). Capital matches with contractual return for man-made assets (Interest). Entrepreneurship matches with residual, non-contractual return bearing business risk (Profit).
Each factor of production has distinct supply characteristics and reward structures: Land receives rent due to fixed natural supply; Labour earns wages as contractual human effort; Capital earns interest on man-made productive assets; Entrepreneurship receives residual profit for uncertainty bearing.
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Anahtar Kavram
Classification of Factors of Production and Their Specific Rewards