Table 1 shows data for a textile factory in Bangladesh.

| Factor | Quantity | Annual Payment |
|--------|----------|----------------|
| Workers | 200 | $480,000 |
| Machinery | 50 units | $120,000 |
| Factory building | 1 | $60,000 |

Which row correctly identifies the factor of production and its reward for the machinery?

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Question

Table 1 shows data for a textile factory in Bangladesh.

| Factor | Quantity | Annual Payment |
|--------|----------|----------------|
| Workers | 200 | $480,000 |
| Machinery | 50 units | $120,000 |
| Factory building | 1 | $60,000 |

Which row correctly identifies the factor of production and its reward for the machinery?

Accepted Answer

Capital — Interest — Award 1 mark for correctly identifying machinery as capital and interest as its reward. A is incorrect — rent is paid for land (natural resources). B is incorrect — wages are paid to labour. D is incorrect — profit is the reward for enterprise.

Answer

Capital — Interest

Answer

Enterprise — Profit

Answer

Land — Rent

Answer

Labour — Wages

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