How Does Demand in Factor Markets Differ from Demand in Product

question 157

Multiple Choice

How does demand in factor markets differ from demand in product markets?

• 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.

---

Definitions:

Muscle Action

The process by which muscles contract and relax, leading to movement of body parts.

Charged Ions

Atoms or molecules that have gained or lost one or more electrons, resulting in a net electrical charge.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell, which is the basic building block of the nervous system.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another in the brain.