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Question

Which of the following are not the rewards received by labour as a factor of production?

A
Rent
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B
Interest
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C
Profit
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D
Wage
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Solution

The correct options are
A Rent
B Interest
C Profit
Rent, profit and interest are the rewards received by land, organisations and capital as a factor of production. Rent is generated by providing lands to production units. Organisations generate profits when the manufactured product satisfies the human want. Interest is the extra amount of capital to be paid along with the total sum when capital is borrowed.

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