Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following is not the component of operating surplus?

Options:

rent

interest

profit

wages

Correct Answer:

wages

Explanation:

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.