Which of the Following Are Considered Factors of Production? I

question 334

Multiple Choice

Which of the following are considered factors of production? I. Land
II) Labor
III) Physical capital
IV) Entrepreneurship

• A) I and II only
• B) I and III only
• C) I, II and III only
• D) I, II, III and IV

Understand and apply the concept of the Sharpe ratio in evaluating investment performance.

Explain the concept of systematic and unsystematic risk and their impact on investment.

Comprehend the role of time horizon in investment risk and return analysis.

Identify the efficient frontier and its significance in portfolio optimization.

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Definitions:

Fixed Costs

are business expenses that remain the same regardless of the level of output or sales, such as rent, salaries, and loan payments.

Variable Costs

Costs that vary directly with the level of production output, including expenses like labor and material costs.

Operating Leverage

A financial ratio that measures the degree to which a company can increase operating income by increasing revenue, highlighting the impact of fixed costs.

High Debt

A situation where a company or individual carries a large amount of debt relative to their assets or equity.