Consider the Mobility of Any Factor of Production

question 40

Multiple Choice

Consider the mobility of any factor of production. The more broadly we define the use of the factor, the
Is the mobility of the factor and the is the share of the factor payment that is economic rent.

• A) lower; lower
• B) lower; higher
• C) higher; higher
• D) higher; lower

---

Definitions:

Transaction Chronologically

Recording of transactions in the order of their occurrence over time.

Accounts

Financial records that track all transactions related to a specific item, such as revenues, expenses, assets, liabilities, or equity.

Normal Balance

The side (debit or credit) of an account that is usual or expected to increase the balance of that account.

Liability

Financial obligations or debts that a company owes to others, which must be settled through the transfer of assets or provision of services.