A Change in the Supply of One Factor of Production

question 406

Multiple Choice

A change in the supply of one factor of production

• A)will not change either the marginal productivities or the prices of other factors.
• B)will not change the prices of other factors, but it may change their marginal productivities.
• C)will not change the marginal productivities of other factors, but it may change their prices.
• D)changes the marginal productivities and the prices of other factors.

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Definitions:

Company Car

A vehicle provided by an employer for the business and sometimes personal use of an employee.

Engine

A machine designed to convert energy into useful mechanical motion.

Factory

A building or complex where goods are manufactured or assembled primarily by machines and workers.

Land

An asset representing real estate property, excluding buildings or structures, used in accounting as a long-term asset.