Which of the Following Factors of Production Is Likely to Be

question 104

Multiple Choice

Which of the following factors of production is likely to be fixed in the short run?

• A) The location of the firm.
• B) The number of employee-hours.
• C) The amount of electricity consumed.
• D) The amount of paper used.
• E) The amount of RAM installed on the network server.

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Definitions:

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with cheaper alternatives.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, making consumers substitute one good for another.