Question

What do people supply in return for factor payments?

A. Innovation, profit, or goods
B. Land, labor, or capital
C. Services, goods, or traditions
D. Innovation, labor, or trade

Answer 1

B. Land, labor, or capital

Answer 2

The correct answer would be option B. Land, labor or capital. The people supply land, labor, or capital in return for factor payments. A factor payment is a wage or interest in return of productive services, resources or any of the factors of production which are land, labor, or capital.