A. Capital
B. Interest
C. Profit
D. None of these
Related Mcqs:
- Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement ?
A. Capital
B. land
C. skilled labor
D. unskilled labor - Which of the following is not a factor of production ?
A. labor
B. land
C. money
D. capital - According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
A. abundant
B. scarce
C. neither
D. can’t tell without more information - If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
A. cause a reduction is output
B. have no effect on output
C. increase the marginal product of the factor
D. generate ever smaller amounts of output - Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
A. decreasing returns to scale
B. The law of diminishing returns
C. constant returns to scale
D. an inefficient production technique - If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
A. an amount equal to the price of output times total output
B. the amount allocated by the political process
C. an equal share of output
D. the value of its marginal product - An individual firm’s demand for a factor of production ?
A. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use
B. Slopes downward due to the factor’s diminishing marginal product
C. slopes upward due to the factor’s increasing marginal product
D. is perfectly elastic (horizontal) if the factor market is perfectly competitive - Which factor best accounts for the existence of cash-crop production as a major form of agriculture i many central American nations today ?
A. demand of world markets for such crops
B. lack of modern agricultural technology
C. inadequate supply of water and other natural resources
D. peasant ownership of most farmlands - The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
A. Ricardo Malthus theorem
B. Heckscher Ohlin theorem
C. Lucas-Laffer theorem
D. Friedman Samuelson theorem - If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs
