Markets for Factors of Production Are Different from Product Markets

question 21

Multiple Choice

Markets for factors of production are different from product markets in an important way because:

• A) the demand for a factor of production is likely to be upward-sloping, in violation of the law of demand.
• B) equilibrium is the exception, and not the rule, in factor markets.
• C) the demand for a factor of production is a derived demand.
• D) the supply-demand characteristics of product markets are not applicable to factor markets.
• E) product markets derive their demand from factor markets.

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Definitions:

Suspension

Means by which axles are attached to the vehicle frame; supports the frame and dampens it from road shock using springs (leaf, air, torsion, rubber, etc).

Landing Gear

The retractable legs used to support a semi-trailer when not coupled to a tractor; most have gear-actuated, retractable legs but hydraulic and lock-pin systems are also available.

Rigid Double-Drawbar System

A specific hitching setup in towing configurations where two drawbars are used in a rigid manner to link a truck and a trailer or between trailers.

Pivot Points

Locations on a vehicle or machinery where parts pivot or rotate around a fixed point, crucial for the movement or operation of certain components.