[Solved] Minimum payment to factor of production is called -

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Q.	Minimum payment to factor of production is called -
A.	Quasi Rent
B.	Rent
C.	Wages
D.	Transfer Payment
Answer» D. Transfer Payment
Explanation: In economics, factors of production are the inputs to the production process. There are three basic factors of production: land, labour, capital. The payment for use and the received income of a land owner is rent. The payment for someone else's laborand all income received from one's own labor is wages. The modern theory of rent is that it is the difference between the actual earning of a factor unit over its transfer earnings. So the Transfer earnings are the mini-mum payment required to keep a factor of production in its present use. It is also known as opportunity cost.

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