As a factor of production, the reward for land is?

1. Analyze the question The question asks which payment is the reward for the factor of production called land.

2. Explain the concept In Economics, there are four factors of production, and each one earns its own reward:

| Factor of Production | Reward | |---|---| | Land | Rent | | Labour | Wage (or salary) | | Capital | Interest | | Entrepreneur | Profit |

"Land" in Economics means more than the ground itself. It includes all natural resources, such as soil, forests, rivers, minerals, and crude oil in the Niger Delta. The payment for using these resources is called rent.

3. Solution, step by step

• Option A, Profit: this rewards the entrepreneur, who takes risks and organizes production. Not land.
• Option B, Interest: this rewards capital, such as money or machinery lent out. Not land.
• Option C, Rent: this rewards land. Correct.
• Option D, Wage: this rewards labour, meaning workers. Not land.

4. Answer The reward for land is Rent, which is option C.

5. Exam tip Use the memory trick "LLCE → R W I P":

• Land → Rent
• Labour → Wage
• Capital → Interest
• Entrepreneur → Profit

Pair them in order and you will never mix them up. A common JAMB trap is to swap Interest and Rent, so remember that interest belongs to capital, which is money or equipment, not natural resources.