How Does Demand in Factor Markets Differ from Demand in Product

question 34

Multiple Choice

How does demand in factor markets differ from demand in product markets?

• A) The demand for a factor of production is difficult to determine.
• B) The demand for a factor of production is influenced by workers' productivity and by the producers' expected sales revenues, not by tastes and preferences of consumers.
• C) The demand for a factor of production is based on the tastes and preferences of firms.
• D) The demand for a factor of production is based on the tastes and preferences of resource owners.

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Definitions:

Security Interest

A legal claim or lien on property, both real and personal, granted to secure the performance of an obligation, often the repayment of a loan.

Provincial Personal Property

Property, excluding real estate, owned by individuals or entities within a specific province.

Automobile

A self-propelled vehicular machine designed primarily for transportation of people or goods over roads.

Loan

Money, property or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges.