The largest component of factor income in the U.S. is:
A) rental income.
B) profits.
C) employee compensation.
D) consumption.

Question

Quizplus · Accepted Answer

According to the Bureau of Economic Analysis, the largest component of factor income in the United States is employee compensation, which includes wages, salaries, and benefits paid to workers. As of 2020, employee compensation accounted for approximately 62% of all factor income in the country. Rental income and profits are also important sources of factor income, but they are relatively smaller in comparison to employee compensation. Consumption is not a component of factor income, but rather a component of GDP.

The Largest Component of Factor Income in the U