Multiple Choice
Investment in physical capital is most likely to occur as a result of an increase in which of the following?
82
views
0. Basic Principles of Economics
Factors of Production
Multiple Choice
Economic factors in decision making fall under the category of __________.
A
factors of production
B
market equilibrium
C
externalities
D
public goods
Verified step by step guidance1
Understand the context of the question: it asks about the category under which economic factors in decision making fall.
Recall the definitions of the given options: 'factors of production' are inputs used in the production of goods and services, such as land, labor, capital, and entrepreneurship.
'Market equilibrium' refers to the state where supply equals demand in a market.
'Externalities' are costs or benefits that affect third parties not directly involved in a transaction.
'Public goods' are goods that are non-excludable and non-rivalrous, meaning they are available to all and one person's use does not reduce availability to others.
Since economic factors in decision making typically refer to the inputs used to produce goods and services, the correct category is 'factors of production'.
Related Videos
Related Practice
