Which of the Following Factors of Production Is Most Likely

question 21

Multiple Choice

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

• A)capital equipment
• B)land
• C)labour
• D)entrepreneurship
• E)technology

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Definitions:

International Trade

The exchange of goods and services between countries, allowing nations to expand their markets and access goods that are not produced domestically.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce more of a good or service with the same amount of resources than competitors.

Economies of Scale

Refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Domestic Price

The price of goods or services within a country's borders, influenced by local supply and demand conditions.