A Determinant of the Demand for a Factor of Production

question 154

Multiple Choice

A determinant of the demand for a factor of production is the:

• A) price of the factor.
• B) productivity of the factor.
• C) quantity of the factor supplied.
• D) compensating differential.

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Definitions:

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Yield

A monetary ratio demonstrating the proportion of yearly dividends distributed by a corporation in relation to its share value.

Common Stock

The basic voting stock issued by a corporation.

Cultural Eutrophication

The process by which lakes, rivers, or coastal waters become over-enriched with nutrients from human activities, leading to excessive growth of algae and environmental degradation.