Which of the following best describes payment for labor's effort in production?

Payment for labor's effort in production is best described as a wage. A wage represents the compensation an employee receives for their contributions to the production process, typically expressed on an hourly, daily, or salaried basis. It reflects the value of labor in the economy, compensating workers for their time, skills, and effort expended in performing tasks that contribute to production outcomes.

In contrast, interest is the payment made for the use of borrowed capital, profit refers to the financial gain remaining after all costs and expenses have been deducted from total revenue, and GDP (Gross Domestic Product) measures the total economic output of a country but does not specifically account for labor compensation as a separate concept. Wages specifically connect to the labor input in production, emphasizing the role that workers play in generating goods and services.