The amount earned by owners of the nation's factors of production is
A) the wages and fringe benefits received by the nation's workers.
B) all profits received by businesses.
C) total income.
D) private and government transfer payments.

Question

Quizplus · Accepted Answer

The amount earned by owners of the nation's factors of production includes all income earned by landowners, laborers, and capitalists in the economy, which is known as total income. This includes wages and salaries, profits and rent. Therefore, C is the correct option as it encompasses all the earnings from the factors of production. Choices A and B are incorrect as they do not include all the income earned by owners of the nation's factors of production, while choice D is irrelevant as it refers to transfer payments rather than income earned by owners of factors of production.

The Amount Earned by Owners of the Nation's Factors of Production