ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In summary, the rewards to the factors of production are: rent for land, wages for labour, interest for capital, and profit for enterprise.

Detailed explanation-2: -The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.

Detailed explanation-3: -The profit generated by the organisation is the reward received for coordinating and controlling the other three factors of production namely land, labour and capital. Profits are the extra income which is the difference between the capital used to produce a product and the selling amount of the product.

Detailed explanation-4: -4. Entrepreneur: Profit is the reward for an entrepreneur.

Detailed explanation-5: -The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.