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JAMB Economics 1990 Question 6

Question 6

Theory of Production

Which of the following rewards is associated with entrepreneurship as a factor of production?

  1. A.Salaries
  2. B.Profits
  3. C.Interests
  4. D.Rent
Show the answer and explanation

Answer: B (Profits)

Explanation

The entrepreneur bears the risk of the business and his reward is profit (labour earns wages, capital interest and land rent).