What is return in economics?

Economics Risk And Return Questions



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What is return in economics?

In economics, return refers to the financial gain or loss that an individual or entity receives from an investment or business activity. It is typically measured as the percentage increase or decrease in the value of an investment over a specific period of time. Return can be derived from various sources such as capital gains, dividends, interest, or rental income. It is an important concept in assessing the profitability and performance of investments and plays a crucial role in decision-making processes.