Consider a Manufacturing Plant as an Example of Physical Capital

question 66

Multiple Choice

Consider a manufacturing plant as an example of physical capital.Factor mobility with regard to this physical capital refers to

• A)the ease with which this plant can be relocated to another location.
• B)the ease with which this plant can be converted to a different use.
• C)the ease with which the labour employed at the plant can be retrained to produce a different product.
• D)the elasticity of supply of the labour employed in the plant.
• E)only the long-run concept of mobility because it is physical capital.

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.

Northern Minnesota

A geographical region in the U.S. state of Minnesota, known for its natural beauty and outdoor activities.

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The region of Canada located closest to the United States border, characterized by its populous cities, milder climate, and economic hubs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.