What Is Meant by the Factor Substitution Effect

question 130

Multiple Choice

What is meant by the factor substitution effect?

• A)The phenomenon of replacing consumer goods with capital goods.
• B)The phenomenon of replacing capital goods with consumer goods.
• C)The phenomenon of replacing technology with capital goods.
• D)The phenomenon of replacing one factor with another as a result of technological change.

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Definitions:

Short-Term Orientation

Focusing on immediate outcomes and benefits, often at the expense of long-term goals.

Assertiveness

The quality of being self-assured and confident without being aggressive; a communication and behavior strategy.

Competitiveness

The quality of being determined to win or be more successful than others.

Ability

The competence or skill to do something effectively or achieve a desired result.