Which type of income is earned only the actor of production enterprise ?
Correct answer: B. Profit
- A. interest
- B. Profit
- C. rent
- D. wages
Explanation
Profit is the reward earned by the entrepreneur for organising production and bearing business risk. Wages, rent and interest reward labour, land and capital respectively.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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