A Change in Demand for a Given Factor of Production

question 139

Multiple Choice

A change in demand for a given factor of production will not occur if:

• A) the price of that factor falls.
• B) the productivity of that factor increases.
• C) the productivity of that factor decreases.
• D) there is a decrease in the price of a substitute factor.

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Definitions:

Independent Contractors

Individuals or entities contracted to perform work for another entity as non-employees, responsible for their own taxes and benefits.

Health Insurance Plans

These are contracts between individuals or their employers and health insurers to provide medical care and services to the insured, often in exchange for regular premiums.

Traditional Health Insurance

Health care coverage that typically requires the insured to pay premiums, deductibles, and copayments, and in return provides benefits for a wide range of medical services.

Qualified Plan

A retirement plan that meets requirements established by the Internal Revenue Code and ERISA, providing tax advantages and benefits.