Which modal of the factor is inelastic?
...Which modal of the factor is inelastic?
Wages
Capital
Labour
Land
Correct answer is D
Land is defined in economics as a free gift of nature. Land does not only include the land surface of the earth but all other free gifts of nature or natural resources like forests, mineral resources, rivers, oceans, atmosphere, etc. unlike other factors of production, the supply of land is limited. In other words, land is a fixed factor of production, it is inelastic.
An inelastic product is defined as one where a change in price does not significantly impact demand for that product. This is because landowners can't shift land to a different market or reduce production. If the land is not on the market for development, it has no value. This means that in order for a good to be elastic, the production or use must change.
Small firms are important for the development of a country because ...
The inefficient distribution of scarce commodities in Nigeria is mostly due to the ...
Which of the following Age group belongs to active Labour force? ...
Quantity (kg) Fixed cost ($) Variable cost ($) Total cost ($) Marginal c...
The deregulation of telecommunication services in Nigeria is a characteristic of ...
Which of the following factors is not a cause of diminishing returns? ...
The international production set for Nigeria and Austria is: \(\begin{array}{c|c} Products &...
The demand curve for goods of ostentation is usually ...
In a free market economy, resources are allocated through the ...
If the marginal utility of good X exceeds that of good Y, this implies that ...