PRC-3 · Chapter 9 · Question 30 of 45
An entrepreneur assumes the immense financial risk of organizing land, labor, and capital to launch a new business. What is the specific economic reward for this risk-taking factor of production?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Profit
Explanation
Profit is the residual reward given to the entrepreneur for organizing the other factors of production and bearing the ultimate risk of business failure.
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