Economics B A-Level
Risk and reward
What Risk and reward means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Risk and reward
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Read the wording for your board, then hide it and explain Risk and reward in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Profit represents the reward for organising the other factors of production and successfully meeting consumer needs, compensating for the risk of losing the initial investment.
Topics that use Risk and reward
- Entrepreneurial motives (Pearson Edexcel A-Level)
Related terms
Using Risk and reward in the exam
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