If small changes in incentives can induce a factor to shift between alternative uses,we say that the factor is
A)mobile.
B)inelastic.
C)flighty.
D)efficient.
E)declining.

Question

Quizplus · Accepted Answer

The term "mobile" refers to a factor of production's ability to easily shift between different uses or sectors in response to changes in incentives or market conditions. If small changes in incentives can induce such shifts, then the factor is considered mobile. Option B, "inelastic," refers to a factor that does not respond significantly to changes in price or other incentives, so it does not fit the description provided. Option C, "flighty," is not a standard economic term and does not apply here. Option D, "efficient," is not relevant to the concept being described. Option E, "declining," suggests a factor that is decreasing in quantity or quality over time, which is also unrelated to the concept of mobility.

If Small Changes in Incentives Can Induce a Factor to Shift