Professor Knight is famous for his theory of

[amp_mcq option1=”Rent” option2=”Profit” option3=”Population” option4=”Wages” correct=”option1″]

Professor Frank Knight is famous for his theory of profit. He argued that profit is a residual income that arises from uncertainty and entrepreneurship. In other words, profit is the reward that entrepreneurs receive for taking on the risk of starting and running a business.

Rent is a payment made to the owner of a factor of production, such as land or capital. Profit is a payment made to the owner of a business, regardless of the factors of production that are used.

Population is the total number of people in a given area. Wages are the payments made to workers for their labor.

In conclusion, Professor Knight is famous for his theory of profit. He argued that profit is a residual income that arises from uncertainty and entrepreneurship.