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:

Margin Error

The amount of error that one can expect in an estimate, often expressed as a plus-or-minus figure and used in statistical analysis to indicate confidence in results.

Confidence Level

The probability percentage that specifies how reliable a confidence interval is in statistical analysis.

Normal Distribution

A symmetric probability distribution characterized by a bell-shaped curve, where the mean, median, and mode of the distribution are equal.

Confidence Interval

An assortment of values, drawn out from sample statistical examination, which is likely to encase the value of an unascertained population parameter.