The Markets for Factors of Production Differ from Markets for Products

question 157

Multiple Choice

The markets for factors of production differ from markets for products in an important aspect because

• A) markets for factors are rarely in equilibrium,whereas markets for products are usually in equilibrium.
• B) demand for factors of production is a derived demand.
• C) the shape of the product's demand curve will be more elastic than the shape of the factor's demand curve.
• D) supply of a factor is dependent on the supply of a product.
• E) the shape of the product's supply curve will be more elastic than the shape of the factor's supply curve.

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Definitions:

Shrinkwrap Contracting

A term used to describe agreements where the terms and conditions are enclosed within a product's packaging and are considered accepted upon opening.

License Agreement

A legal contract between a licensor and a licensee allowing the latter to use, produce, or sell an invention, software, or trademark.

Sealed Package

A form of packaging that is securely closed or sealed, making the contents tamper-evident and ensuring the integrity of the product until it reaches the consumer.

United Nations Convention

A formal agreement or treaty developed and adopted by member states of the United Nations on various global issues.