A Change in Demand for a Resource Can Be Caused

question 16

Multiple Choice

A change in demand for a resource can be caused by

• A)proportion of economic rent in the total earnings of the resource
• B)opportunity cost of the resource
• C)price of the resource
• D)a change in the number of firms producing the final product
• E)ease with which resources can be put to alternative uses

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Definitions:

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Materials Quantity Standard

The established amount of materials that should be used for the production of a unit of goods.

Labor Quantity Standard

The benchmark or established norm for the amount of labor input required to produce a certain amount of output, reflecting efficiency expectations.

Materials Price Standard

The predetermined cost of materials that should be incurred under efficient operating conditions.