Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following is not one of the component of profit?

Options:

Dividend

Retained Earning

Tariffs

Corporate Tax

Correct Answer:

Tariffs

Explanation:

The correct answer is Tariffs.

Profit is the difference between revenue and expenses. It is the amount of money that a business has left over after it has paid all of its costs.

Retained earnings, dividends, and corporate taxes are all components of profit. Retained earnings are the profits that a business keeps and reinvests in itself. Dividends are the profits that a business pays out to its shareholders. Corporate taxes are the taxes that a business pays on its profits.

Tariffs, on the other hand, are not a component of profit. Tariffs are taxes that are imposed on imported goods. They are a cost of doing business, and they are not included in the calculation of profit.