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:

Mammogram

A medical test that uses X-ray imaging to detect abnormalities in the breast tissue, typically used for breast cancer screening.

Electrocardiogram

A medical test that records the electrical activity of the heart to detect heart problems.

Electroencephalogram

A test that measures and records the electrical activity of the brain using small, flat metal discs attached to the scalp.

Lymphogram

A diagnostic imaging test that visualizes the lymphatic system, including lymph nodes and vessels, typically using a contrast dye.