In the two-sector model, households provide factor services to the firms and receive income in the form of ____________.

rent

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wages

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interest and profits

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all of the above

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Solution

The correct option is D all of the above
In a two sector economy, the household sector renders factor services and is in return rewarded with factor payments by the firms in the form of rent, wages, interest and profits.

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In the two-sector model, households provide factor services to the firms and receive income in the form of ____________.

The correct option is D all of the aboveIn a two sector economy, the household sector renders factor services and is in return rewarded with factor payments by the firms in the form of rent, wages, interest and profits.

The correct option is D all of the above
In a two sector economy, the household sector renders factor services and is in return rewarded with factor payments by the firms in the form of rent, wages, interest and profits.