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Factors of Production: True or False (EN)

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Factors of Production: True or False (EN)

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About this activity

Yes/No quiz on distribution theories

Created by

Sowmya S .
Sowmya S .
India

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Factors of Production: True or False (EN)
 

Factors of Production: True or False (EN)Online version

Yes/No quiz on distribution theories

by Sowmya S .
1

Profit is determined only by a firm’s technology and is unrelated to market structure or macroeconomic factors.

2

Rent arises solely from the physical scarcity of land and is independent of demand.

3

Rent is the payment made for the use of land.

4

The demand for a factor is derived from the demand for the product it helps to produce (derived demand).

5

Modern Theory of Distribution emphasizes that bargaining power and institutional factors influence factor incomes.

6

Wages are determined at the subsistence level in the Ricardo framework.

7

Marginal Productivity Theory states that wages, rents, and profits are determined by the marginal revenue product of the respective factors.

8

Wages always rise with population growth and never affect profits.

9

In a perfectly competitive factor market, the firm is a price taker and the marginal factor cost (MFC) equals the factor price.

10

The supply curve of a factor is downward sloping in the short run in a perfectly competitive market.

11

Under perfect competition, the demand for a factor is determined by its marginal revenue productivity (MRP).

12

Firms with monopoly power set prices above marginal cost, increasing the profit share.

 
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