| The factor payment serves the function of ensuring that the factor is employed efficiently in its highest and best use. |
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| Rental income of persons is typically the smallest of the five factor payment categories, usually less than 4 percent of gross domestic product. |
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| Compensation of employees is far and away the largest factor payment, most recently comprising about 70 per cent. of national income, which also makes it well over half of gross domestic product. |
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| A return to a more appropriate factor payment policy might force decision makers to examine the costs as well as the benefits of mineral developments. |
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| A royalty can also be regarded as a factor payment for the extraction of the mineral resource similar to factor payments on capital and labor inputs. |
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| Industries consume intermediate and factor inputs and pay factor costs to the labor and capital in the factor market, whereas households receive income from factor payment and spend for consumption. |
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