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Which factor of production earns the highest percentage of total U.S. income? Define that factor of production. What is the income earned by this factor of production called?
The factor of production that earns the highest percentage of total U.S. income is
The income this factor of production earns is called,
A. labor, which is the work time and work effort that people devote to producing goods and services;
wages
B. human capital, which is the knowledge and skill that people obtain from education, on-the-job training, and work experience;
interest
C. entrepreneurship, which is the human resource that organizes labor, land, and capital to produce goods and services;
profit (or loss)
D. labor, which is the knowledge and skill that people obtain from education, on-the-job training, and work experience;
wages
E. land, which is the natural resources that we use to produce goods and services;
rent
