dolution

 

1. Fill in the blanks to make the following statements correct.

 

a. If a factor of production can be easily induced to shift to an alternative use, then we say the factor is highly ______

 

b. If a factor of production is highly ______ between uses, that factor’s elasticity of supply is high.

 

c. If it is difficult for a factor of production to shift between uses, that factor’s elasticity of supply will be quite ______

 

d. Consider the mobility among firms and industries of a pharmaceutical salesperson. This worker is likely to be quite mobile between ______ but less mobile between

 

e. In general, the demand by most firms for factors of production is small relative to demand in the economy as a whole. So, the supply curve for factors faced by any individual firm is almost perfectly ______.

 

f. The total supplies of land, labour, and capital to the economy change gradually over time, often in response to ______ forces.