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JAMB Economics 1989 Question 6

Question 6

Labour Market

If X represents the factors of production and Y represents the factor price, which of the following sets of association is correct?

  1. A.(Land, rent), (capital, wage), (labour, profit)
  2. B.(Land, interest), (capital, profit), (labour, wage)
  3. C.(Land, wage), (capital, interest), (labour, rent)
  4. D.(Land, rent), (capital, interest), (labour, wage).
Show the answer and explanation

Answer: D ((Land, rent), (capital, interest), (labour, wage).)

Explanation

Land earns rent, capital earns interest and labour earns wages (entrepreneurship earns profit).