A. Suppose that businesses buy a total of $110 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $64 billion in wages, $12 billion in rent, and $22 billion in interest, how much are households paid for providing entrepreneurial ability?

Enterprenural ability= $12 billion

Explanation:

Enterprenural ability can be defined as the human resource that gives the ability to combine other resources available to a business to create a product, make non routine decisions, innovate, and bear risks.

The main traits of an enterpreneur are research, focus, cash management, communication, and learning.

In the given instance a company buys four resources (labour, land, capital, and enterprenural ability) for $110 billion from households.

Enterprenural ability= Total spent- wages - rent- interest

Enterprenural ability= 110 billion- 64 billion- 12 billion- 22 billion

Enterprenural ability= $12 billion

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