Question

Capital earns ______ as a factor income.

पर्याय

• Wage

• Rent

• Profit

• Interest

Answer 1

Capital earns interest as a factor income.

Explanation:

• Capital earns interest as a factor income, which is the payment made to those who provide financial resources for investment.
• This interest compensates capital providers for the opportunity cost of using their funds in production rather than elsewhere.