BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
income
|
|
|
tax
|
|
|
profit
|
|
|
all the above
|
Detailed explanation-1: -Profit is a residual income. It is the residue left from the sale of goods after the deduction of all wages, interest, and rent.
Detailed explanation-2: -The factors of production are rewarded for their contribution to the production of goods and services. The reward for land is rent, for labor it is wages, for capital it is interest and the reward for entrepreneurship is called profit.
Detailed explanation-3: -Answer: The process of determination of rent, wages, interest and profit is called factor of production.
Detailed explanation-4: -In economics, economic rent is any payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In economics, the price paid to labour for its contribution to the process of production is called wages.
Detailed explanation-5: -National income is equivalent to total earnings in the form of wages, rent, interest, and profits.