Which of the following is the odd one out?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Revenue
Wages, interest and rent are factor payments: each is a part of revenue paid to a factor of production. Revenue is the whole money earned from selling the product, out of which they are paid.
Option (1) Revenue — False. Revenue is the total earning from sales, not a payment to any factor.
Option (2) Wages — Factor payment. Wages are paid to labour.
Option (3) Interest — Factor payment. Interest is paid to capital.
Option (4) Rent — Factor payment. Rent is paid for the service of land.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … After producing output with the help of these three factors of production, namely capital, land and labour, the entrepreneur sells the product in the market. The money that is earned is called revenue. Part of the revenue is paid out as rent for the service rendered by land, part of it is paid to capital as interest and part of it goes to labour as wages. The rest of the revenue is the earning of the entrepreneurs and it is called profit. …” |