Economic Awareness - Sectors of Indian Economy
In the Income Method, which of the following is classified under 'Profit'?
In the Income Method, which of the following is classified under 'Profit'?
medium Q4 of 15
Step-by-Step Solution
Step 1: Understand 'Profit' in Income Method
Profit is the income earned by entrepreneurs after paying other factor incomes like wages, rent, and interest.Step 2: Analyze options
Returns to entrepreneurs after paying wages and interest fit the definition of profit. Salaried income is wages, interest on deposits is interest income, and rent is income from land.Final Answer:
Returns to entrepreneurs after paying wages and interest → Option DQuick Check:
Profit = Entrepreneur's residual income after factor payments ✅
Quick Trick: Profit = residual income of entrepreneurs after other factor payments.
Common Mistakes:
- Confusing profit with wages or interest income.
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