A Problem with Measuring the Factor Shares to Determine Scarcity

question 94

Multiple Choice

A problem with measuring the factor shares to determine scarcity or abundance is that:

• A) it is very hard to count workers in some nations.
• B) estimates are very unreliable.
• C) the quantity of a factor may not be as important as its productivity.
• D) scientists disagree over the method by which to compute "share."

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Definitions:

Means Of Production

The facilities, resources, and tools used to produce goods and services, including land, labor, technology, and capital.

Capitalism

A financial structure where capital goods are owned privately or by corporations, with investments made based on individual decisions, and where the cost, creation, and allocation of commodities are predominantly influenced by competitive forces within an open marketplace.

Fascism

A far-right, authoritarian ultranationalist political ideology and movement, characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy.

Price Mechanism

The way in which prices rise and fall as a result of changes in supply and demand, allocating resources through the economy.