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Question : ________________ is the amount paid to factors of production for their contribution in the production process. 

Option 1: Factor cost

Option 2: Market price

Option 3: Net factor income from abroad

Option 4: Net factor income to abroad


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Factor cost


Solution :

The cost of the production factors is known as the factor cost. The total cost of the factors of production used to manufacture a specific good in an economy is referred to as the factor cost. It covers expenses such as those related to land, labour, capital, raw materials, transportation, etc.
Hence, Option A is correct.

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