What are factors of production? Why are the factors of production said to have a derived demand?
What will be an ideal response?
A factor of production refers to a commodity or a service that is used to produce other goods and services. The demand for factors of productions is referred to as derived because their demand is determined by the demand for the final goods and services that they are used to produce.
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The relationship between two variables, x and y, is a vertical line. Thus x and y are
A) positively correlated. B) negatively correlated. C) not related. D) falsely related.
Both Keynesians and supply-siders believe that tax cuts
a. will increase income by increasing aggregate supply. b. will increase income by increasing aggregate demand. c. will increase income but for different reasons. d. will increase income in the Keynesian model but decrease income in the Supply-side model.
In LDCs, persistent poverty occurs because of preference for _______ , which results in ___________
a. large families; low levels of capital goods production b. more consumption today; less consumption tomorrow c. high birth rates; high death rates d. high birth rates; low death rates e. culture; an absence of assimilation
In the national income accounts, depreciation is called
a. "consumption of fixed capital." b. "negative investment." c. "diminished value." d. "loss due to wear."