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GCE Commerce 1989 Question 44

Question 44

Production

Pure profit is the element of profit paid

  1. A.for land
  2. B.for capital
  3. C.a manager
  4. D.to an entrepreneur
  5. E.for labour
Show the answer and explanation

Answer: D (to an entrepreneur)

Explanation

Profit is the reward of the entrepreneur for bearing risk; land earns rent, capital interest and labour wages.