Factors of Production and Their Rewards

Steps:

• Identify the four main factors: land, labor, capital, and enterprise.
• Recall standard rewards: land gets rent, labor gets wages, capital gets interest, enterprise gets profit.
• Evaluate each option against these pairings.
• Select the option with incorrect reward for its factor.

Why C is correct:

• Labor's reward is wages for work provided, per classical economic theory; dividends are profit shares to shareholders, not labor income.

Why the others are wrong:

• A: Capital's reward is interest as payment for loaned funds.
• B: Enterprise's reward is profit as return for risk and organization.
• D: Land's reward is rent as payment for natural resource use.

Final answer: C