Other Things Being Equal,the Demand for a Factor of Production

question 64

Multiple Choice

Other things being equal,the demand for a factor of production will be less elastic if the demand for the final product it produces is:

• A) elastic.
• B) inelastic.
• C) unitary elastic.
• D) perfectly elastic.

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Definitions:

Cognitive Generalizations

The mental process of forming broad concepts or principles by abstracting common features from specific examples.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to quick but sometimes inaccurate judgments.

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another, who can accept or reject the offer.

Collectivistic Societies

Societies that prioritize the group over the individual, valuing social harmony, interdependence, and group goals over personal achievement.