Based on the relative size of factor payments, the most important resource in the U.S.economy is
A)capital.
B)land.
C)labor.
D)natural resources.

Question

Quizplus · Accepted Answer

Factor payments refer to the income earned by different factors of production, such as labor, capital, land, and natural resources. The relative size of factor payments indicates which factor of production is most important in generating income in the economy. In the U.S. economy, the largest share of factor payments typically goes to labor, indicating that labor is the most important resource. This is because the U.S. economy is a service-based economy, where a significant portion of economic activity is driven by human skills and expertise. While capital, land, and natural resources are also important factors in the economy, they do not generate as much income as labor.

Based on the Relative Size of Factor Payments, the Most