Question

Consider the following arguments:
Statement 1: Land as a factor of production does not have any reward.
Statement 2: Natural resources apart from land are a factor of production.
Which of the following are correct?

• A. Only 1
• B. Only 2
• C. Both
• D. None

Answer 1

Answer: (D)

None

None of the above the statements are correct. Rewards are associated with all the factors of production. Rent is the reward for land while all natural resources form part of land as a factor of production.