What are payements to factors of production called?

Question

What are payements to factors of production called?

Answer 1

land - rent

labor - wages

capital - interest/dividend

enterprise/entrepreneur - normal profit

Answer 2

In economic theory, factors of production are the resources employed to produce goods and services. Here the quantity of output is modeled as a function of the amount of each input employed.  Classification of factors can include such broad aggregates as labor, land, and capital.

Land  payment is Rent

Labour  payment is Wage

Capital  payment is Profit

# Land or natural resource – naturally-occurring goods such as water, air, soil, minerals, flora and fauna that are used in the creation of products. The payment for land use and the received income of a land owner is rent.

# Labor – human effort used in production which also includes technical and marketing expertise. The payment for someone elses labor and all income received from ones own labor is wages.

# Capital stock – human-made goods (or means of production) which are used in the production of other goods. These include machinery, tools and buildings. The classical economists employed the word capital in reference to money (gold) also. Money however was not considered to be a factor of production in the sense of capital stock. The return to loaned money or to loaned stock was styled as interest while the return to the actual propietor of capital stock (tools, etc) was styled as profit.