Economics 0455 · IGCSE · The factors of production

The factors of production — practice question

Sanjay, who is a risk taker, opens a restaurant in Chennai. He also works in the business as a chef. He leases the restaurant building from Raghav and employs him to serve the customers. Which income is earned by Sanjay and Raghav?

  • ASanjay: interest and profit; Raghav: wages only
  • BSanjay: interest and wages; Raghav: profits and rent
  • CSanjay: profits and wages; Raghav: rent and wages
  • DSanjay: profits only; Raghav: interest and wages

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