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What does factor payments mean? – definitions
https://www.definitions.net/definition/factor+payments
Freebase (4.20 / 5 votes) Rate this definition: Factor payments. Payments made of scarce resources, or the factors of production in return for productive services. They are also categorized according to the services of the productive resources being rewarded. As wages are being paid for services of labor, interest is paid for the services of …
Factor payments – Wikipedia
https://en.wikipedia.org/wiki/Factor_payments
In economics, factor payments are the income people receive for supplying the factors of production: land, labor, capital or entrepreneurship.
Payments made of scarce resources, or the factors of productionin return for productive services. They are also categorized according to the services of the productive resources being rewarded. As wages are being paid for services of labor, interest is paid for the services of capital, rent is p…
FAQ factor payments
What is the meaning of factor payments?
Factor Payments : payments made of scarce resources, or the factors of production in return for productive services. ... As wages are being paid for services of labor, interest is paid for the services of capital, rent is paid for the services provided by the land and profit is for the factor of payment to entrepreneurship.
What are the factors of payment in economics?
Factor payments. Land is the primary factor of production. Labor is the specific factor of production and payment is made in the form of wage. Capital is regarded as secondary factor of production as it can be manipulated by economic activity. Payment received would be in the form of interest.
Are all factor payments included in national income?
All factor payments are included in national income. Factor incomes earned by factors of production and factor payments made by an enterprise to factors for rendering productive service are, in fact, the same. The former is viewed from the side of factors of production and the latter from the side of an enterprise. (ii) Transfer payment.
How do you determine equilibria of factor payments?
Equilibrium of factor payments is determined by the intersection of the downward-sloping factor demand curve and the vertical supply curve. The optimal factor payments are determined through their respective markets i.e. the market clearing prices of the factors of production.
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