An Example of a Variable Factor of Production in the Short

question 350

Multiple Choice

An example of a variable factor of production in the short run is

• A) a building.
• B) capital equipment.
• C) an employee.
• D) land.

---

Definitions:

Variability Of Return

Denotes the volatility in the profits or gains from investments over a period.

Risk

The exposure to the potential of loss or damage when the outcome is uncertain.

Risk Aversion

The tendency of investors to prefer lower risk options, avoiding higher risk investments even if they offer potentially higher returns.

Expected Return

The profit or loss an investor anticipates on an investment that has various known or expected rates of return.