If a Product Becomes More Popular and Consumers Want More

question 159

Multiple Choice

If a product becomes more popular and consumers want more produced, which of the following best describes what happens to move more factors of production into that industry?

• A)The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry.
• B)Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry.
• C)An agency of the Federal government directs the movement of factors.
• D)Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production.
• E)Factor owners voluntarily move their factors because they want to satisfy the interests of consumers.

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Definitions:

Ombudsman

An official appointed to investigate individuals' complaints against maladministration, especially that of public authorities.

Designated Neutral

An assigned individual who remains unbiased and impartial, often used in conflict resolution or decision-making processes.

Third Party

A third party refers to an entity that is involved in a transaction or relationship but is not one of the principal parties, often providing a service or mediation.

Communication Process

The transfer of information from a sender to a receiver, involving the encoding, sending, receiving, and decoding of messages.