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Question
Land as a factor of production, can earn income in the form of ______.
Options
Rent
Wages
Capital
Interest
Solution
Land as a factor of production, can earn income in the form of rent.
Explanation:
- Land as a factor of production earns income in the form of rent, which is the payment made for the use of land or other natural resources.
- Rent compensates landowners for allowing others to utilize their land for productive purposes.
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