wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What reward does capital as a factor of production recieve?

A
Wages
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Interest
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Rent
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Profit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Interest
Every factor of production receives a reward. Capital as a factor of production receives Interest as a reward. When a company takes a loan out, it is expected to pay back the total with some extra amount. This extra amount is known as interest.

flag
Suggest Corrections
thumbs-up
5
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Capital and organisation
GEOGRAPHY
Watch in App
Join BYJU'S Learning Program
CrossIcon