Practicing Success
Which of the following is not the component of operating surplus? |
rent interest profit wages |
wages |
The correct answer is Option 4: Wages Operating surplus, also known as operating income or operating profit, represents the surplus generated from the production process after deducting all production-related expenses except for compensation to labor and capital (wages and interest). Operating surplus is thus the sum total of rent, interest, profit to be distributed among the other three factors of production. |