Regarding increasing productivity,factor mobility is
A)Important in that it helps to fix a stable labor-intensive production process.
B)Important in that it helps to fix a stable capital-intensive production process.
C)Important in that it helps to reallocate resources in a dynamic economy.
D)Not important in either a stable or dynamic economy.

Question

Quizplus · Accepted Answer

Factor mobility refers to the ability of resources (such as labor and capital) to move from one industry or location to another. This is important in a dynamic economy because it allows resources to be reallocated to the most efficient and productive uses. In a stable economy, factor mobility may be less important as resources may be already allocated in a sustainable manner. Therefore, option C is the correct answer as it highlights the importance of factor mobility in a dynamic economy.

Regarding Increasing Productivity,factor Mobility Is