For a Restaurant

question 202

Multiple Choice

For a restaurant:

• A) labor and food would be variable factors of production.
• B) a building would be a fixed factor of production in the short run.
• C) fire insurance on a building would be a fixed factor of production.
• D) A and B are correct.

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Definitions:

Real Asset

Physical or tangible assets, such as real estate, commodities, or natural resources, which have intrinsic value.

Consumer Durables

Long-term goods purchased by consumers that are expected to last for several years, such as appliances, cars, and furniture.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Mutual Fund Shares

Portions of ownership in a mutual fund that an investor can buy, representing a share in the fund's profits, losses, income, and expenses.