GCE Commerce 2023 Objective — Question 4

Question 4 of 50 from the General Certificate of Education (GCE) Commerce 2023 Objective paper, with the correct answer and a full explanation.

The reward for the factor of production called capital is (a) rent (b) wages (c) interest (d) profit

A. rent
B. wages
C. interestCorrect
D. profit

Explanation

Interest is the payment made by borrowers to lenders for the use of their money; it is the reward for capital, the opportunity cost of money that could have been invested elsewhere.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Commerce 2023 Objective More Commerce past papers