The largest component of factor income is

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Employee compensation, which includes wages, salaries, and benefits, is typically the largest component of factor income. This is because the majority of people in the economy are employed as workers, and therefore receive compensation for their labor. Rental income and profits are also important components of factor income, but they typically make up a smaller share of total factor income than employee compensation does. Consumption, while important for measuring economic output, is not a component of factor income.

The Largest Component of Factor Income Is