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- Production Factorseconomics-mcqs › production-factors
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Which of the following is NOT a likely result of a reduction in the supply of agricultural tractors?
Multiple choice question for Production Factors. Select an option, then review the explanation below.
Explanation
Reducing the number of tractors available typically leads to higher tractor rental prices (A), lowers the rental value of farmland due to decreased productivity (B), and reduces the marginal product value of tractors (C). However, it does not cause farm workers' wages to rise (D), as labor demand may not increase in this scenario.
More Production Factors MCQs
Practice related questions from the same subject.
- 1.Imagine a war fought using biological weapons that eliminate human labor but leave physical capital intact. Compared to the pre-war period, what changes would you expect in the equilibrium wages and rental prices after the conflict?
- 2.How does a rise in automobile prices affect the demand for autoworkers?
- 3.At what point should a profit-driven competitive firm continue to employ additional workers?
- 4.Why does the demand curve for an individual firm's factor of production slope downward?
- 5.How does a reduction in the number of fishermen affect the market for capital goods, such as fishing boats, in the fishing sector?