Demand in Factor Markets Differs from Demand in Product Markets

question 238

Multiple Choice

Demand in factor markets differs from demand in product markets in that

• A) the demand for a factor of production is difficult to determine.
• B) the demand for a factor of production is influenced by workers' productivity and by the producers' expected sales revenues, not by tastes and preferences of consumers.
• C) demand for a factor of production is based on the tastes and preferences of firms.
• D) demand for a factor of production is based on the tastes and preferences of resource owners.

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Definitions:

Social Classes

Categories within a society that are differentiated by aspects such as wealth, occupation, and ancestral lineage, often determining access to resources and opportunities.

Occupations

Various forms of employment or professions where individuals engage in specialized tasks to earn a living.

Lifestyles

The characteristic ways in which individuals or groups live, including patterns of social relations, consumption, entertainment, and dress, often associated with particular communities, periods, or locations.

Earnings

The amount of money that an individual or business receives in exchange for labor, products, or investments, typically measured over a certain period of time.