Question on: JAMB Economics - 2012
The reward on machinery and equipment in the process of production is known as
A
profit
B
interest
C
rent
D
wages
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Correct Option: B
The reward on machinery and equipment in the process of production is interest.
* **Interest:** This is the payment for the use of capital, which includes machinery and equipment.
* **Profit:** This is the reward for the entrepreneur's effort and risk-taking.
* **Rent:** This is the payment for the use of land.
* **Wages:** This is the payment for labor.
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