Match the following theories of profit with their propounders TheoryPropounder (a) Profit as Rent of…
Regarding economic theories of profit: F.A. Walker propounded the Theory of Profit as Rent of Ability; J.B. Clark developed the Dynamic Theory of Profit (arising from…
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Match the following theories of profit with their propounders
| Theory | Propounder |
|---|---|
| (a) Profit as Rent of Ability | (i) F.B. Hawley |
| (b) Dynamic Theory of Profit | (ii) Joseph A Schumpeter |
| (c) Risk Theory of profit | (iii) J.B. Clark |
| (d) Innovation Theory of Profit | (iv) F.A. Walker |
Answer and explanation
Correct answer C
Regarding economic theories of profit: F.A. Walker propounded the Theory of Profit as Rent of Ability; J.B. Clark developed the Dynamic Theory of Profit (arising from dynamic changes in an economy); F.B. Hawley formulated the Risk Theory of Profit (profit as the reward for risk-bearing); and Joseph A. Schumpeter advanced the Innovation Theory of Profit.
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UGC NET Commerce