What is income paid to the owner of land or capital in return for productive service called?

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1248028

2026-06-02 02:30

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Income paid to the owner of land or capital in return for productive service is called "rent" for land and "interest" for capital. Rent compensates landowners for the use of their land, while interest compensates capital owners for the use of their funds. Both are forms of income derived from the ownership of productive resources.

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