The reward to capital as a factor of production is
Answer Details
The reward to capital as a factor of production is "interest." Capital refers to the machinery, equipment, and other assets used in the production process. Interest is the return that the owners of capital receive for allowing others to use their assets.
Interest is often calculated as a percentage of the amount of capital invested, and it is paid to the owners of the capital as compensation for the risk they take on by investing in a particular project or enterprise. The interest rate reflects the opportunity cost of investing in one project over another, and it is influenced by factors such as inflation, government policies, and the overall level of economic activity.
Overall, interest is an important source of income for those who own capital, and it plays a critical role in encouraging investment and economic growth.