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:

Long Run

A period in economics sufficient for all markets to adjust, including production facilities and labor.

Capital

A resource, either financial or physical, that is employed with the aim of generating wealth through investment or production.

Public Corporation

A company whose shares are traded publicly on a stock exchange, and ownership is open to the public.

Computer

An electronic device capable of processing, retrieving, and storing data, executing programmed instructions to perform a wide range of tasks.