Question: Rent, wages, interest and profit are related to the term (BHU Pre PG 2016)
Options:
Production
consumption
exchange
distribution
• Rent, wages, interest, and profit are all factors of production. These are the resources used to produce goods and services. They represent the payments made to the owners of these resources for their contribution to the production process:
-Rent: Payment for the use of land or other natural resources.
-Wages: Payment for labor services.
-Interest: Payment for the use of borrowed money.
-Profit: The return to the entrepreneur for taking risks and organizing the production process.
📌 Other Options Explained:
-(b) Consumption: Consumption refers to the act of using goods and services.
-(c) Exchange: Exchange involves the trading of goods and services.
-(d) Distribution: Distribution refers to how income and resources are distributed among different groups in society. While it's related to the factors of production (as income is earned from them), it's a separate concept.