A Change in the Supply of One Factor of Production

question 406

Multiple Choice

A change in the supply of one factor of production

• A)will not change either the marginal productivities or the prices of other factors.
• B)will not change the prices of other factors, but it may change their marginal productivities.
• C)will not change the marginal productivities of other factors, but it may change their prices.
• D)changes the marginal productivities and the prices of other factors.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash during a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Dishonored Note

A promissory note that has not been paid by the maker at its maturity date.

Interest Calculation

The process of determining the amount of interest earned or paid over a period of time on investments or loans.