The More Elastic the Demand for a Final Product

question 179

Multiple Choice

The more elastic the demand for a final product,

• A) the more elastic will be the demand for the productive resources used.
• B) the less elastic the supply of resources used in producing the product.
• C) the less firms will reduce their usage of resources when the price of the resources increases.
• D) the higher the MRP of the resources used to produce the product.

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Definitions:

Free Rider Effect

A phenomenon where some individuals benefit from resources or services without contributing to the cost, often seen in team or group settings.

Team Incentives

Reward systems designed to motivate team performance by offering benefits or compensation based on achieving collective goals or benchmarks.

Piece Rates

A payment method where workers are paid a fixed rate for each unit of production completed, encouraging productivity and efficiency.

Incentive Systems

Programs designed to motivate and reward employees for reaching or exceeding performance targets.