NABTEB Commerce 2023 Objective — Question 4
Question 4 of 50 from the National Business and Technical Examinations Board (NABTEB) Commerce 2023 Objective paper, with the correct answer and a full explanation.
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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.
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