Which of the Following Statements Concerning Factor Mobility Is FALSE

question 94

Multiple Choice

Which of the following statements concerning factor mobility is FALSE?

• A) The allocation of labour tends to depend more on non- monetary considerations than does the allocation of either land or capital.
• B) Once it is in place, a factory designed and built for a specific purpose is highly mobile.
• C) The elasticity of the supply of labour to any particular use is likely to be greater in the long run than in the short run.
• D) Factor mobility is an important determinant of economic rent.
• E) Land is a mobile resource in an economic sense, because it has many alternative uses.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices, typically downward sloping.

Law of Diminishing

A principle that states the incremental utility or benefit gained from consuming additional units of a good or service tends to decrease with each additional unit consumed.

Marginal Utility

The additional utility, or satisfaction, derived from consuming an additional unit of a good.