Question

Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest, how much are households paid for providing entrepreneurial ability?

Answer 1

Answer:

the households are paid 10billions for providing entrepreneurial abaility

Explanation:

The Total amount is 100 billiopns, we can build an equation :

total = rent + wages+ interest + entrepreneurial

we plug the value and sovle for the unknow value

100 billion = 10b rent + 60b wages + 20b interest + entrepreneurial

100 - 60 - 20 - 10 = 100 - 90 = 10 entrepreneurial