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

Question

Quizplus · Accepted Answer

The term "mobile" is used to describe factors of production that can be easily shifted between alternative uses based on changes in incentives. Therefore, if small changes in incentives can induce a factor to shift between alternative uses, we can say that the factor is mobile. This is the only option that properly fits the description given in the question.

If Small Changes in Incentives Can Induce a Factor to Shift