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Economics miscellaneous

  1. The remuneration of the entrepreneur in production is
    1. Pure profit
    2. Gross profit
    3. Net profit
    4. Super-normal profit
Correct Option: C

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. An entrepreneur is a person who combines the other factors of production – land, labor, and capital – to earn a profit. His profit is in the form of Net Profit which is achieved by deducting other elements (such as planning the production, producing the commodities on the basis of demand, looking after efficient distribution) from the gross profit.



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