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About: Factor payments     Goto   Sponge   NotDistinct   Permalink

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In economics, factor payments are the income people receive for supplying the factors of production: land, labor, capital or entrepreneurship. Payments made of scarce resources, or the factors of production in return for productive services. They are also categorized according to the services of the productive resources being rewarded. As wages are being paid for services of labor, interest is paid for the services of capital, rent is paid for the services provided by the land or other immovable assets and profit is for the factor of payment to entrepreneurship.