Match List-I with List-II:
| List-I | List-II |
|---|---|
| (A) Revenue | (I) Labour which is sold and purchased against wages |
| (B) Profit | (II) The money earned by selling the product in the market |
| (C) Investment expenditure | (III) Expenses which raise productive capacity |
| (D) Wage labour | (IV) The part of the revenue left after rent, interest and wages are paid |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I)
These terms follow the money of a capitalist firm: from selling its output to paying the factors and expanding.
| List-I | List-II | Reason |
|---|---|---|
| (A) Revenue | (II) The money earned by selling the product in the market | Revenue is what the firm earns from sales. |
| (B) Profit | (IV) The part of the revenue left after rent, interest and wages are paid | Profit is the entrepreneur’s earning, the rest of the revenue. |
| (C) Investment expenditure | (III) Expenses which raise productive capacity | New machinery and factories raise capacity. |
| (D) Wage labour | (I) Labour which is sold and purchased against wages | Workers are hired for a wage. |
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. Profits are often used by the producers in the next period to buy new machinery or to build new factories, so that production can be expanded. These expenses which raise productive capacity are examples of investment expenditure.” “… (c) there is sale and purchase of labour services at a price which is called the wage rate (the labour which is sold and purchased against wages is referred to as wage labour).” |