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Question
Capital earns ______ as a factor income.
Options
Wage
Rent
Profit
Interest
MCQ
Fill in the Blanks
Solution
Capital earns interest as a factor income.
Explanation:
- Capital earns interest as a factor income, which is the payment made to those who provide financial resources for investment.
- This interest compensates capital providers for the opportunity cost of using their funds in production rather than elsewhere.
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