The Demand for Factor Inputs

question 7

Multiple Choice

The demand for factor inputs:

• A)depends upon the markets for the goods that the inputs are used to produce.
• B)is referred to as imputed demand.
• C)is independent of how much the inputs contribute to the value of the end product.
• D)is generally constant across most factor markets.

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Definitions:

Financing Activity

Involves transactions related to a business's funding, including obtaining or repaying capital, issuing shares, and paying dividends.

Investing Activities

Financial transactions related to the purchase and selling of long-term assets and other investments not considered as cash equivalents.

Long-term Assets

Assets that are expected to provide economic benefits over periods longer than one year, such as buildings, machinery, and land.

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.