What are the four factors of production and what are the remunerations to each of these called?
The four factors of production are human labour, capital, entrepreneurship, and land (fixed natural resources). Each factor receives a specific remuneration for its contribution to the production process.
The remuneration for human labour is called wage. The remuneration for capital is called interest. The remuneration for entrepreneurship is called profit. The remuneration for land (fixed natural resources) is called rent.
These four kinds of contributions are made during the production of goods and services, and households receive payments from firms for these productive activities they perform.
Explanation
The textbook clearly lists the four factors of production in section 2.2: human labour, capital, entrepreneurship, and land (fixed natural resources). Each has a corresponding remuneration: wage, interest, profit, and rent respectively. This is a fundamental concept in understanding the circular flow of income and how factor payments work in an economy.